Business Calculations - Taxes

What are taxes commonly used for? Government collects taxes from value added tax and goods and service tax, which are commonly used for the enforcement of law and public order, economic infrastructure, public works, social engineering, building and maintaining roads, funding welfare and public services, and the operation of government itself. Not only that, the government uses taxes for supporting their services/departments, such as education systems, healthcare systems, pensions for elderly, unemployment benets, public transportation, and energy, waste, and water management systems. Who do taxes benet in society? (consider some Hong Kong examples) Taxes benets to almost everyone in society, including unemployed citizens, employed citizens, elderly, students, and the government itself. For example, every time you get into your car and drive on a public highway, you ride on roads built, maintained - its paid by the government using tax dollars. Hong Kong has alway been a safe society, due to the policemen doing preservation of good order in the society - their salary comes from the tax dollars. Hong Kong always has a lot of services for the citizens, such as free educations, health-cares, pensions for both elderly and unemployed citizens...these services exists due to the taxes, in other word, taxes benets to the society. What are the advantages and disadvantages of high taxation levels like in Sweden? The two main disadvantage of high taxation levels would be: discourage of businesses, as the prots businessman make will be curtailed by a high tax rate; penalize hard work, if citizens work harder and earn more money, more of their incomes will be given to the government. As for the advantages, it would be the increasing amount and the improving quality of services, which would be given to the citizens. To be precise, that would mean the citizens would be able to enjoy free education, high quality health cares, and there would be pensions after retirement. What are the advantages and disadvantages of low taxation levels like in Singapore? The advantages of low taxation level would be: large number of foreign companies and business professional would be moving into the country, increasing the GDP (Gross Domestic Product) of the country. For example, Singapore, its GDP is still growing from year to year, and Singapores GDP per capita is now the top ve highest in the world. As for the disadvantages, it would be the government is going to have less power to control the country, and there would be less services for the citizens. For example, the Singapore governments expenditure on education - 3% of GDP only; the governments expenditure on health care - 3.9% of GDP only. Thats not a lot of expenditures on public services; comparing to other countries, Singapore was ranked as no. 167.

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