Monday, September 9, 2019

Taxation Essay Example | Topics and Well Written Essays - 1750 words - 2

Taxation - Essay Example s taxation is replete with various complexities and disparities, while saving is discouraged in many ways, wherein simple interest-bearing accounts are meted out the harshest treatment, while the same time other types of savings are granted large-scale benefits for tax savings (Mirrlees, Adam, Besley, et al., 2012). This disparity and intricacy in tax treatment have led to the emergence of an industry that thrives on simply advising people on the nature of their savings allocation that is not based on the best form of underlying investments, but is more dependent on the form of tax treatment. In this context, the essay provides a brief review of the Mirrlees Review’s recommendation to provide a tax system with a neutral treatment of life-cycle savings for the vast majority of taxpayers. The Mirrlees Review aimed at addressing the challenge of designing a tax system that would enable the UK government to raise revenues necessary for achieving its distributional and spending objectives, while lowering its administrative and economic inefï ¬ ciencies and avoiding disparity in tax treatment across citizens and different types of economic activities. It main principle behind all its proposals was the framing of a progressive, neutral tax system, wherein the three words ‘progressive,’ ‘neutral,’ and ‘system’ form to be the important keywords that are suggestive of the main findings of the Review. Therefore, it can be suggested that first, policy makers must aim at designing a tax system that functions effectively as a ‘system.’ The way in which different taxes can be assembled together is important, as is a clarity regarding the role played by each tax within the system. Second, distribution plays a major role within the system of tax and beneï ¬ ts, similarly the trade-off between efficiency and redistribution is at the core of tax policy related debates. The redistribution ambit is ascertained by society’s choices and the system effect is based on

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