Wednesday, August 31, 2011

What is ideal taxation system

Actually if you can earn 6000 per month and need to pay income tax. Are you feel fair? If your earning for one simple family like one wife with 2 kids, that's all right. But if yours family have six adult with they had been lose earning power. Are you feel ok?

If i can choose i have to prefer earn 2k per month or 3k per month with six family member with the same salary range. So that I have no pressure at all to pay income tax. So, are you feel current taxation is fair? Those day a lot of riches man use to employ his own parents as employee in their company. So, the payment of living cost eligible to reduce income tax. As an ordinary people, we have no choice to do that because yours income have to divide it six piece to survive.

Government should impose a taxation system to reduce such way to escape the tax. If they found out some one employ relative in the company which controlled by them. Such employee salary should not allow as expenses of the company. It encourage the more productivity and efficiency of the company and also reduce the relative playing the politic in the company.

Now days most of the riches also transfer the assets into charity foundation. So, they also appointed themselves as chairman in such charity and indirect way to control the company and assets. Government should impose a law to stop them to operate the charity funds and appointed funds manager to manage it to reduce conflict of the interest. If the founder of the charity insist they be a chairman they should pay higher tax than normal. Otherwise the contribution of charity become as a indirect way reduce their payable of income tax.

So, on the other hand government should set a rule those income tax collected should not use as administration cost to pay government servant salary and medical benefit. They should obtain approval from Parliament to set an investment funds to pay for it. So, the government servant should show their effectiveness to operate the department with the lower costs. Higher income group and holding more assets and investment group should pay higher cost to obtain the service from local government. Those want to be a senator should pay higher tax in the three years for qualification to allow them feel good to be. They should proof they are eligible to manage the government taxation income because they are a high contributed the funds. In such way to remind them do not misuse the said funds.

The collection of the taxation funds only can use it to develop country and helping the basic needs of the poor people. The above suggestion only for reference because generally Government still encourage to create few riches man as a guide to population and proven themselves manage the country in the right way. So, are you still need a fair system on that. So, there is no ideal taxation system because most of the people is selfish. It was allow government continue playing some magic show to convince people support them.

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