a need for a new taxation system: flagressive tax
TRANSCRIPT
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Progressive Tax
VS
flat Tax
Taeyang21.1.2016
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What percentage of VAT tariff on food (in NL)???
A:
B:
C:
D:
3%
6%
9%
21%
SOURCE: BELASTINGDIENST
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INDEXDefinition of each tax sys-
tem What is the main question?
Evaluate the criteria with opin-ions
Ways to solve the question con-clusion
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Background Informa-tion
Flat tax – a system that reflects the constant tax rate regardless of income (McBride, 2012).
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Progressive tax – a system that ap-plies different tax rates, depend-ing on income (Ungar, 2015).
Background Information
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Research Question!
How should flat and progressive taxation systems be adopted for the whole society.
To improve the society through implement-ing
taxation systems harmoniously
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Criteria
How to eval-uate?
Govern-ment Rev-
enue
Organisa-tional mo-tivation
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Government revenue
Flat tax LowerRev-enue Lower
Investments in
Public infra
Social well-being
pro-gressive
tax
(Murphy, 2012)
Greater RevenueGreater
Investments in
Public infraSocial well-be-
ing
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Organisational mo-tivation
Flat tax
Low tax rates
Encourage Firm’s in-vestments
Economic growth
pro-gressive
taxRelatively
HighTax rates
Demotivatefirms’invest-
ments
Economic de-pression
(Saez & Piketty, 2013)
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Personal viewFlat tax
pro-gressive
tax
Flagres-sivetax
Have firms invest in social infra for the society.
Grant companies tax exemptions or discounts on social-improvement areas
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ConclusionRQ: How should flat and progressive taxation systems be adopted for the whole society?
To combine both harmoniously to improve the social well-being.
Further research: how do governments grant tax discounts and
exemptions?
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BIBLIOGRAPHY Belastingdienst, not known, Tax Tariffs Retrieved from: http://
www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/business/v at/vat_in_the_netherlands/calculating_vat/vat_tariffs
McBride William, (2012, December 18). What is the Evidence on Taxes and Growth? Retrieved from: http://taxfoundation.org/article/what-evidence-taxes-and-growth
Murphy, R. (2012, May 22). Flat tax - the great way to help the poorest pay for the richest. Retrieved from: http://www.theguardian.com/commentisfree/2012/may/22/flat-taxes- taxpayers-alliance
Saez, E., & Piketty, T. (2013, October 23). Why the 1% should pay tax at 80%? Retrieved from: http
://www.theguardian.com/commentisfree/2013/oct/24/1percent-pay-tax-rate-80percent
Ungar, R. (2015, November 11). A Progressive's Case For Moving To The Flat Tax-Maybe. Retrieved from: http://www.forbes.com/sites/rickungar/2015/11/11/a-progressives- case-for-moving-to-the-flat-tax-maybe/#2715e4857a0b166d0b992246