The paper "Effects of Tax Rates on Economies" is a perfect example of a macro & microeconomics research paper. Taxation and tax rates determine the financial policies of different countries. These countries align their financial goal, strategies and development depending on the taxation policies in the country. The structure and financing realized are crucial in the achievement of economic growth. Contrariwise, tax rate cuts can significantly encourage individuals to save, work and invest. When tax cuts are not however financed by immediate spending cuts, the federal budget deficit will be realized; which might effectively reduce a nation’ s savings.
Surprisingly, for a year now UAE has never incorporated VAT systems, as such, it is considering the integration of such policies. The introduction of such systems would mean that the country would reduce its competitiveness in the business environment; notably attracting foreign investments. This paper will help people understand the impact of taxation on a country’ s financial strategy, exploiting information regarding various tax laws observe in various countries and elaborating the least and most tax-friendly places globally, with special emphasis put on the UAE where there is no taxation.
As such, it draws upon secondary literature from divergent researchers in creating a well-informed approach to understand taxation systems. Taxation 1.0 Introduction Taxation is a critical issue that affects the financial strategies and policies of a given country. Taxation plays an important role in determining strategies employed in investment. People like investing where as little as possible will be deducted from their turnover. Therefore, taxation is among the key factors that determine investment plans. Investors are keen to evaluate the amount of taxes they will be required to pay before opening up businesses in different areas.
Generally, global investors pay taxes for foreign investments, capital gains, dividends and interests. Payment of investment-related taxes depends on factors such as the investment income, tax sheltering plans, the corresponding tax laws and the type of investment. Interest earned during investment is subject to taxation at full rates of income, with the rate of taxation being defined by the marginal tax rates. All the other taxable revenues have their corresponding rates and policies.
Alesina, A., & Ardagna, S. (2010). Large changes in fiscal policy: taxes versus spending. In Tax Policy and the Economy, Volume 24 (pp. 35-68). The University of Chicago Press.
Arnold, J. M., Brys, B., Heady, C., Johansson, Å., Schwellnus, C., & Vartia, L. (2011). Tax Policy for Economic Recovery and Growth*. The Economic Journal, 121(550), F59-F80.
Arulampalam, W., Devereux, M. P., & Maffini, G. (2012). The direct incidence of corporate income tax on wages. European Economic Review, 56(6), 1038-1054.
Bouyamourn, A. (2014). UAE ranked least corrupt nation in theArab world by Transparency International. The National Busines.
Broom, A. 2006. Ethical issues in social research. Complementary therapies in medicine, 14(2), pp.151--156.
Carroll, R. (2009). The Economic Cost of High Tax Rates. Tax Foundation.
De Hoon. (2015). Doing Business in Dubai: No More Taxes.
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2010). The effects of executives on corporate tax avoidance. The Accounting Review, 85(4), 1163-1189.
Easterly, W., & Rebelo, S. (1993). Fiscal policy and economic growth. Journal of monetary economics, 32(3), 417-458.
Feldstein, M., S. (2008). Effects of Taxes on Economic Behavior. NBER Working Paper Series.
Golladay, F. L., & Haveman, R. H. (2013). The economic impacts of tax—transfer policy: Regional and distributional effects. Elsevier.
Hungerford, T. L. (2012). Taxes and the economy: An economic analysis of the top tax rates since 1945 (updated).
Kitces, M. (2013). Understanding Marginal Tax Rate Vs Effective Tax Rate And When To Use Each. Nerd’s Eye View.
Maceda, C. (2015). How VAT can affect UAE competitiveness Gulf News Economy
Analyst tackles other negative effects of value-added tax
Merriman, B., & Merriman, B. (2010). Genealogical standards of evidence. Toronto: Ontario Genealogical Society.
Mertens, K., & Ravn, M. O. (2013). The dynamic effects of personal and corporate income tax changes in the United States. The American Economic Review, 103(4), 1212-1247.
Michael, G. (2011). How Taxes Affect The Economy. Investopedia.
Muijs, D. (2004). Doing quantitative research in education with SPSS. London: SAGE.
Ramey, V. A. (2011). Can government purchases stimulate the economy?. Journal of Economic Literature, 49(3), 673-685.
Resnik, D. and others, 2010). What is ethics in research & why is it important. Research Triangle Park, North Carolina: National Institute of Environmental Health Sciences/National Institute of Health.
Reynolds, A. (1998). The International Importance of Low Tax Rates. National Center for Policy Analysis. 283.
Robson, C. (2007). How to do a research project. Malden, MA: Blackwell Pub.
Salanie, B. (2011). The economics of taxation. MIT press.
Spier, P. (2010). Effective marginal tax rates for working for Families recipients. Changing Families’ Financial Support and Incentives for Working.
Stuart, A., Geetha, V., & Jeffrey, S. (2007). Introducing the Effective Marginal Tax Rate in Introductory Macroeconomics. JOURNAL OF ECONOMICS AND FINANCE EDUCATION. 6(1).
Williams, R. (2012). Marginal Tax Rates Matter More Than Average Tax Rates. Forbes.
Wood, R. W. (2013). Top French Court Upholds 75% Tax While Footballers Eye Exit. Forbes.