Question

What are the various types of taxes used by governments? Who are the actors that make funding decisions? How are they accountable to the public? How does the public influence this process? Why is taxing and spending so controversial?

Answer 1

Taxes are involuntary fees levied by government on individual or corporate, in order to finance government activities. There are Different types of taxes are :

Income tax,property tax,taxes on goods and services

income tax

2)property tax which includes

a)capital gain tax

b)estate Tax

3)taxes on goods and services:

a)excise tax

b)sales tax

c)user fees

• Funding decision in he country like India is purely taken by Ministry of finance.Finance minister is authorised to make budget and allocate the resources.

• They are very much accountable to the public because resources are scarce and once the taxes are collected every penny belongs to the people.Therefore how carefully the allocation of resource is being done? Where to spend ? how to spend ? and how much to be spend ? these are some basic points where government needs to work strongly into that.

• Public is very much responsible on the above process :
• firstly they need to pay taxes on time, rather skipping they pay tax .
• Tax evaders are selfish they don't think from the nation's point of view. They need to sensitize themselves that their tax income is used for economic development.
• lastly public elects the government so its a duty of the public to keep a check on the government's function and performance.

Taxing and spending are controversial because it may harm or it may serve the society.Collecting taxes itself is a tedious task .because many people may try to skip paying tax.

• secondly there should not be corruption existing ,under that situation spending of public is not done properly.Hence it hampers the development.
• government is always accountable to the people's hard earn money.Each penny spend on civic development requires justification.
• every project needs an assessment whether its vital to the nation's economy or not? Thus taxing and spending always remains controversial.
• how much transparency is being maintained on public finance is also an important point.
• lastly political stability and economic strength also gets affected .