The Low Incomes Tax Reform Group (LITRG)’s Post

*WHY MUST GOVERNMENT BALANCE TAX POLICY AND PRIVATE SECTOR DEVELOPMENT?* Balancing Tax Policy and Private Sector Development is significant for several key reasons: *1. Economic Growth* Effective tax policies are crucial for funding public services and infrastructure without overburdening businesses. A balanced approach ensures that the private sector can thrive, contributing to overall economic growth and job creation. When GDP is growing, the government can then tax larger proportion of the GDP. *2.Fairness and Equity* A balanced tax policy ensures that all economic actors contribute their fair share to national development. This promotes equity and reduces disparities between different sectors and income groups. There is no more tax burden on the formal sector only. Everyone pays some. *3. Government Revenue Stability*. A balanced tax policy helps stabilize government revenue by creating a predictable environment for business operations, which in turn leads to steady revenue from taxes. REGISTER TODAY!

*WHY MUST GOVERNMENT BALANCE TAX POLICY AND PRIVATE SECTOR DEVELOPMENT?* Balancing Tax Policy and Private Sector Development is significant for several key reasons: *1. Economic Growth* Effective tax policies are crucial for funding public services and infrastructure without overburdening businesses. A balanced approach ensures that the private sector can thrive, contributing to overall economic growth and job creation. When GDP is growing, the government can then tax larger proportion of the GDP. *2.Fairness and Equity* A balanced tax policy ensures that all economic actors contribute their fair share to national development. This promotes equity and reduces disparities between different sectors and income groups. There is no more tax burden on the formal sector only. Everyone pays some. *3. Government Revenue Stability*. A balanced tax policy helps stabilize government revenue by creating a predictable environment for business operations, which in turn leads to steady revenue from taxes. REGISTER TODAY!

*WHY MUST GOVERNMENT BALANCE TAX POLICY AND PRIVATE SECTOR DEVELOPMENT?* Balancing Tax Policy and Private Sector Development is significant for several key reasons: *1. Economic Growth* Effective tax policies are crucial for funding public services and infrastructure without overburdening businesses. A balanced approach ensures that the private sector can thrive, contributing to overall economic growth and job creation. When GDP is growing, the government can then tax larger proportion of the GDP. *2.Fairness and Equity* A balanced tax policy ensures that all economic actors contribute their fair share to national development. This promotes equity and reduces disparities between different sectors and income groups. There is no more tax burden on the formal sector only. Everyone pays some. *3. Government Revenue Stability*. A balanced tax policy helps stabilize government revenue by creating a predictable environment for business operations, which in turn leads to steady revenue from taxes. REGISTER TODAY!

The Canadian government plans to increase the inclusion rate for capital gains taxes from one-half to two-thirds for both individuals earning over $250,000 annually and all corporations and trusts. This adjustment is set to take effect on June 25, 2024, and aims to target wealthy individuals who currently benefit from tax advantages unavailable to the middle class. The new tax measures are anticipated to generate approximately $21.9 billion over the next five years. These funds are expected to support new government spending, including initiatives to boost Canada's housing supply, while also providing tax benefits for entrepreneurs. Read more via BNN Bloomberg https://lnkd.in/guu5ZB5z

#Tax policy for 2024, my take in The News today. https://lnkd.in/deZiZMXY ➡️Which type of government is preferable, a govt that does little and taxes little or viceversa. ➡️A big government needs finances to meet public expenditure. Finances come from efficient and progressive taxation, necessitating rethinking of taxation policy, structure, and system. ➡️MOF’s proposed reforms (if gets implemented without creating insecurities & turf war within FBR) can reduce anomalies in taxation system, enhance transparency and accountability, curb smuggling (especially misuse of the Afghan Transit Trade Agreement), bring efficiency in tax collection through data-led system which also minimises rent-seeking opportunities, and give tenure protection to the senior management. ➡️upcoming government, being a big govt, will face the imperative task of augmenting revenues to accommodate increased spending. The formulation of a viable plan to finance the expanding public expenditure will be a major agenda point during its talks with the IMF. ➡️That is where the next government will find the current reform plan handy. It can always refine this plan and present it as a comprehensive homegrown reform agenda.

In many developing countries, taxes take money from the efficient private sector and give it to the less efficient public sector. Finance ministers and tax authorities in these countries often try to increase tax revenues because they have low tax-to-GDP ratios or budget deficits. But just focusing on collecting more taxes isn’t enough. Governments also need to spend money more wisely and openly. Unfortunately, they rarely talk about cutting public spending. They just focus on raising taxes without making spending more efficient. This approach isn’t good for developing countries. Finance ministers and tax authorities should aim to spend money more efficiently, not just increase tax revenues. Otherwise, inefficient spending and high taxes will keep hurting the growth of private businesses. It’s important to understand the challenges that businesses and individuals face when trying to grow their incomes. Most companies try to cut costs to be more productive, but they get little help from the government, which often sends unnecessary tax notices and demands fees. To truly help the economy, there needs to be a balance between collecting taxes and spending money wisely. #tax #taxefficiency #taxinefficientcountries #sectors #economy #businessrelocation #relocation #structure #offshorestructure

Although there are differing perspectives on how the Australian Government stage 3 tax cuts should be applied, this is the wrong question and forces us into class warfare. The real question is why is Australia so reliant on income tax? Income tax accounts for 47% of government revenue.... With the remaining 53% spread across corporate, duties, GST and excises. Imagine if you were a company and 47 percent of your revenue was from one product! In the OECD , Australia has the highest income tax as a proportion of revenue. What does this tell you? It means our economy is too simple.... It lacks serious innovation. It also means we are reliant on immigration and higher populations, which in turn increases our costs (and subsequently our debts). Can we please stop talking about which bracket should pay more tax and start talking about different revenue streams? It's lazy government and not real tax reform. Also, make sure you index the brackets to inflation please...

According to new data from the OECD, the UK's tax level has reached its highest rate on record, with a tax-to-GDP ratio of 35.3% for the 2022/23 financial year - a 0.9 percentage point increase from last year. Additionally, separate figures reveal that the UK now faces the highest level of property taxes in the developed world. These findings shed light on the current economic landscape and highlight the importance of understanding tax implications for businesses and individuals alike. Read more on UK tax level rising to the highest on record: https://bit.ly/3Tn4AuE #TaxLevels #UKTax #OECD

Australia’s tax take is in great condition, coming in at “29.5% as a percentage of GDP”, down just a smidge of 29.6% from the previous year.

Happy Saturday. Don't forget to move your clock forward tonight if you live in a Daylight Savings Time zone. Here is an article discussing income and other taxes. The suggestion is to lower income tax and increase the GST or fedetal portion of the value added tax In Canada. I believe the authors are well intended but they are missing one key fact. The value added tax has too many exceptions exemptions and exclusions, or the three "E's" as i refer to them (so does income tax, by the way). I have a better idea: let's eliminate all three E words and LOWER the tax rates. The amount of tax evasion eliminated will make up for the decreased rates. We have to reduce the incentive for people to evade paying tax by having more reasonable tax rates and reduce the burden for the tax paying population who isn't evading reporting and payments. https://lnkd.in/gXBB4drw