Taxation and Distribution

Taxation and Distribution

A tax is a payment made to the government by an individual who has earned certain amount during a year. Income tax is a most important basis of income to the government. In other words it is an amount charged by a government on products, income, or activities. There are two types of taxes direct tax (which is charged on personal and corporate income directly) and indirect tax (which is charged on the prices of services and goods). In America the proposal of taxation was introduced in the year of 1794, it was during the presidency of George Washington but the process of enforcement was not implemented until 1800's. The need of taxation system was felt to expand the American Navy and Army. After several protest the taxation system was implemented as a necessity to improve the structural system of America every citizen was taxed as a portion of their total proceeds. The main role of tax consist of three variable: Tax base (The value of the item or object that is taxed), the practices followed for assessment (The market value percentage of the object that is being taxed), and the tax levy (The rate of tax levied on the assessed value of an item or object) (Brimley and Garfield, 2008). It is the basic aim of tax system to raise revenue for providing sufficient funds for the government expenditure programs. There are different groups with idea related to the additional task performed by the taxation system. It includes changing behavior and redistribution. The government has to perform the role of maintaining balance between the activities as well as competing priorities related to welfare, in all these cases the designed objectives should be achieved effectively. Through the persepective of an aggregate welfare the tax system should be neutral that is it should not create distortion in the areas for instance recruitment and business investment. In case the tax system works in the opposite direction the policy related to non tax oibjective should be minimized (Keen, M, 2007).

Education is the primary responsibility of the state inevitable and unavoidable. The education provided by the State should be secular and free. The State is responsible for planning, evaluating, directing, supervising and promoting the educational process at all levels and modalities. The State guarantees the participation of the family, community and social organizations in the educational process. It should be directed to the development of the personality, respect for human rights and fundamental freedoms. With the establishment of a welfare society, the new government felt the need of schooling system that provided quality education free of cost. The leaders sold the idea to the public, until the 19th century the 1stelementary School for the public was opened and all the children were served of not just the wealthy. Public education schools in the United States still have the primary authority similar to an individual state (Sabine, B, 1966). Every state with the passage of time has developed educational department and ...