The essence of tax policy
After studying the fourth chapter, the student will:
- the scientific basis of tax policy;
- the principles of formation, objectives and methods of tax policy;
- tools used by the state to regulate tax policy;
- modern scientific theories that underlie the formation of the tax policy of states with a market economy;
be able to
- to distinguish between strategy and tactics of tax policy;
- scientifically justify the use of the appropriate form of tax policy depending on the state of the state's economy;
- the skills of using tax policy tools to regulate the economy;
- modern scientific theories of taxes used by states in conducting tax policy.
Tax policy as an indirect method of state regulation
In order to ensure the process of constant progressive economic development, solving social problems of society, the state should use the whole arsenal of methods available to it for influencing the economy. Market economy does not mean that the state is eliminated from the processes of management and regulation. On the contrary, during the creation of the foundations of the mechanism of market relations (the current stage of development of the United States economy), the regulatory role of the state in the development of the economy is strengthened. The first who made the corresponding forecast was the economist A. Wagner. His calculations and theoretical calculations were considered truly revolutionary, as he, one of the first to understand the limitations of the market, divided the economy into two sectors - public and private and formulated a law of increasing state activity. In accordance with this law, in all countries where market relations are developing rapidly, public spending should increase. In addition, according to A. Wagner, in the market conditions, it is the state financial policy that determines social and scientific and technical progress. At the same time, these processes should not interfere with the production and financial activities of economic entities. The state should create the necessary conditions for the functioning of market mechanisms and with their help to regulate economic processes.
The most important instrument of the state in realizing the goals is tax policy. The tax policy influences practically all social and economic spheres of the country and is inextricably linked with many elements of public administration, such as monetary policy, pricing, structural reform of the economy, trade and industrial policy, etc. Manipulating tax policy, the state stimulates economic development or restrains him. However, the main direction of the tax policy is ultimately to ensure economic growth. It is with economic growth that the indicators of the development of production and its effectiveness, the possibility of raising the material level and the quality of life are linked.
The tax policy refers to indirect methods of state regulation, since it alone provides the conditions for economic interest or disinterest in the activities of legal entities and individuals and is not built on the basis of power relations.At the same time, tax policy as an indirect method of state regulation is more flexibly perceived by the economy and therefore more widely used in market systems than direct government regulation.
In each country, tax systems are in a continuous process of improvement, they affect the economic and social conditions of development and adapt to them. While creating the country's tax system, the state seeks to use it for the purpose of certain financial policies. In this regard, it becomes a relatively independent direction - tax policy. Basically, the forms and methods of tax policy are determined by the political system, national interests and goals, the administrative-territorial arrangement, the absence or presence and nature of interaction between different forms of ownership and some other provisions.
The tax policy is a set of economic, financial and legal measures of the state on the formation of the country's tax system in order to meet the financial needs of the state, individual social groups of the society, as well as the development of the country's economy through the redistribution of financial resources.
The tax policy, like any other state policy, has its content, which is characterized by consistent actions of the state to develop a scientifically based concept for the development of the tax system, determining the most important directions for using the tax mechanism, as well as practical implementation of the tax system and monitoring its effectiveness.
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