An invitation to build a tax system that is financed government investment

3/9/2016 0:00

BAGHDAD - Imad Emirate
D, according to the academy. Enam more from the Faculty of Administration and Economics at the University of Mustansiriya, that the states that follow the tax system works appropriate to focus on the burden of taxes who are able to pay it, spending the proceeds in satisfaction of the poor countries are capable of intervention in the treatment of the problem of inequality in income distribution.

From here, the public expenditure significant role in reducing inequality in income distribution through public spending consumer, which leads the expansion in consumer spending the public in general to re-distribution of income between the classes in favor of the poor class, through the enjoyment of most of the services provided by the state, while the funding for these services is often through a growing part of the entry of the wealthier classes by progressive taxation truncated, Making education free leads to equal educational opportunities for the children of the community, as it seeks free treatment and related improve their level as a result of increased output, She d. Enam investment expenditure lead role in the formation of the money in kind capital in the states, to contribute to the re-distribution of income between the classes in favor of the poor, so that the government investments that are often funded through progressive taxation, and deduct from entering the rich is aimed in the first division for the construction of the infrastructure of the economy, and give the opportunity for the establishment of productive projects, leading to absorb more manpower and raise the income levels of overall workers in general, and this disparity between the rich and the poor, the less achieve this result reflected the existence of a tax system just makes the pot taxes able to push it and spent for the benefit of those in need .

She explained d. Enam and if we moved to Iraq in particular, which is 1927, the year in which the tax legislation went through the income tax, we find that the political, social and economic developments role in the distribution of income between classes, Iraq relied on the production of raw materials for the purpose of export, which is dominated by foreign companies operating in this the productive sector on the brunt of its revenue, as it took control of the other forms of public revenues in fees imports and customs tax imposed on independent sources of wealth by these companies, any increase dependence on foreign sector was characterized by weak tax deductions in absolute value and relative, so as to use
Tax exemptions of income as a tool to attract foreign capital, and the lack of tax legislation on farm incomes, and consequent to that of the diminutive size of the tax base.

She as well as the use of high levels in the hierarchy of the tax rise due to the division of a single income to different types of business such as income and industrial income, and impose a separate tax on each type of hand in exchange for higher consumption taxes that are imposed on essential commodities with this use because of political and economic control of the class rich, which refuses to impose high taxes on luxury goods, and to exempt essential goods and thus works to pay for public burdens on the poor by imposing taxes on Consumption .

He concluded d. Enam to say: that the imposition of direct taxes, with progressive rates with a tax system that does not allow evasion of them, lead to a redistribution of income in a fair way, especially if they spent those taxes to fund public services for the benefit of the poor, as well as the imposition of direct taxes on inheritance and other taxes is direct production fees and import duties on luxury goods, leading to a fair income distribution, because who owns the estate and consume luxury goods are high earners, and also impose taxes on essential goods leads to poor distribution, because the burden is more on the poor and middle classes compared to class Rich.