Taxation Assignment Example | Topics and Well Written Essays - 2000 words - 2

Taxation - Assignment Example When the government decreases its levy on goods, there will be a high consumption rate and more production by the firms. This decrease of levy on goods leads to increase in capital (David 1817). Corporations are also subject to taxation by the government. Corporations pay taxes to the government for services provided. Corporations fill out forms as required by the state laws and hence recognized by the government (Leandra 2002). It is the duty of the corporation to pay taxes to the government for services provided and failure to do so can lead to legal actions towards the corporation. Before investors make an investment plan, they identify the tax system of their investment location. A tax system that is negatively designed does not favor the investor’s interests and will drain their resources and time. The different types of taxes levied by the government are indirect taxes, direct taxes, progressive taxes and non-progressive taxes. Generally, this paper will look at UK tax system and also recommendations made in the Mireless review. The paper will also explain the benefits that will come with the proposed recommendations and also the parties that will be affected by the recommendations. The taxation systems in UK today do not favor the households. It oppresses them through the heavy taxes that are imposed on them by the government. The taxation system has influenced the amount of money that people save and the manner in which they do so (Stuart, James and Christopher 2012). This system does not lead to economic growth since people are not encouraged to save. It has led to inflation in UK hence calling for reforms in the taxation system. The United Kingdom’s tax rate is among the highest in the world. Despite people earning high incomes, they have been subjected to high tax rates hence little savings by the income earners. A high increase in income tax has also led to the rise of other related taxes such as taxes on allowances,