Tax is an important aspect to the government as it’s a source of revenue. This fiscal capacity is important for the functioning of a state and also for the welfare of the citizens. e.g. through construction, equipping and renovation of hospitals schools and roads. This research proposal is inclined towards analysis and evaluation of tax on the Gross domestic product determinants such as employment rate, interest rates among others. I will be performing various.
The scholarly research on the activity of taxation indicates that enhanced revenue collection techniques will result into an increase in government expenditure. However, the use of the above techniques will pose some risks. This study evaluates the most effective od enhancing revenue collection by the tax man in the United states, parts of Asia, Europe and Africa. The review considered opinions of the wealthy sect and the poor. The statistical techniques used in the data resulted into data analysis before the presentation of the same using tables and charts.
Most of the revenue collectors in the world do not collect the projected tax during a financial year. Use of progressive taxation is recommended in this research proposal. Its is clear that the government cannot function without revenue. Therefore tax is the main source of income FOR ANY government. Most of the tax is in form of income tax or payroll. As attributed by the US federal tax body, during the fiscal year 2021, income taxes will account for the 50%, payroll taxes make up to 36% and corporate tax supply 7%.The rest is made up of estate taxes and excise or custom duty. The United States alone has a federal and local government just like Kenya. Taxes are imposed on the net income of individuals and corporations and are allowed a credit on foreign taxes. The income subject to tax id determined under tax tax accounting rules which may change depending on the economy. E.g. during the Corona pandemic, these rules have been changed in order to accommodate it’s impact on overall economy. Rapid migration, corruption, tying money in legal disputes and change of business name are some of causes leading to failure to acquire set tax revenue in a financial year. Business people are leading in tax evading in the world (Investopedia., 2019). Considering that tax is one of the government’s primary sources of revenue, recent National Treasury statistics revealed that tax evasion will increase the budget deficit by 6.2 per cent. This is up from 5.9 per cent in 2018. This deficit close to Sh500 billion a year (Daily nation., Thursday,14,2019).