Redistribution of income and wealth through taxes

3/14/2017 0:00

BAGHDAD / Imad emirate
seeks government support for the state treasury through taxes , which is globally one of the important tools to stimulate the productive sectors of the local Kalsnaat and protect them from competition from imported counterparts, leading to lift the prices of imported goods and create conditions for competition manufactured goods nationally.

Economic academic Abdullah star Chaoui stressed that taxation of the important tools resorted to by the government to stimulate the economy in all circumstances, noting that in periods of deflation and stagnation least purchase, consumption and piling products the government is when that increase the purchasing power of low - income to reduce the income tax rate and raise the amount of the tax exemption and increase family exemptions, and reducing indirect tax rates, especially those related to the basic needs of citizens such as bread, milk for children.

He Chaoui in an interview for the "morning" in a period of prosperity and inflation could use tax economic means to reduce government spending and raise tax rates on entry to ease the purchasing power of private spending, and lower taxes on capital and savings to give impetus to projects production in order to increase production and lower prices, stressing that these measures must be part of an integrated economic policy, and not tax measures in isolation.

Most states tax were used as a means to encourage economic sectors such as industry, agriculture and tourism sector, and the exemption of such activities from any taxes imposed on the other hand , taxes on luxury goods is produced.

Among Chaoui, some believe that the sole purpose of taxation is the financial and economic goal through the government 's efforts to collect money from citizens to finance its expenditures, but to tax other targets could be of importance is reflected impact directly on citizens, if exploited taxed effectively.

He pointed out that the goals carry many and varied social dimensions, particularly the concept of social justice and the emergence of new trends just for the income and the reduction of the distribution of the exploitation of the working class, as well as the emergence of the distribution of the tax burden in the community concepts by level of income and wealth in our present age.

He said the tax Atstqta without provoking reflections on consumption, production, savings and investment, so governments using tax to guide economic policies and resolve the crises that are exposed, and by encouraging the branches of the necessary production and processing of recession and stagnation and fighting concentrated in the productive sectors of the sessions.

Chaoui He pointed out that the tax contribute to guide local investments to some unwanted sectors, as deliberately to encourage investment in some sectors or reduce it in the other sectors, adding if the government found the need to encourage a particular sector , they resort to completely relieved from tax or reduce the increase imposed on it in order to stimulate investment in this sector, stressing that the cancellation of the tax or reduction of working to increase the return earned by the investor.

Chaoui said: On the other hand the government resorted to the imposition of high tax rate on sectors that feel increased investment needed for the community, leading to a shift of investment in certain sectors to other sectors such as raising taxes on luxury industries and reduction of the pharmaceutical industry.

Dr. Chaoui concluded his speech by saying: The government exempt revenue bonds issued by the development of the state tax to encourage the purchase of these securities, or a tax on deposits in provident funds or any other financial investment supports the economy to reduce the national.