Discussion 3 Wrap-up…….and the winner is……
DISCUSSION 3 WRAP-UP…….AND THE WINNER IS…… 1
Discussion 3 Wrap-up…….andthe winner is……
Name of the Institution
Month day, 2017
Joining the contest andultimately winning the competitions was one of the best experience inmy life. The appointment as the State Tax Commissioner was alsonecessary considering my knowledge and understanding of economicsconcepts and elasticity. Besides, my experiences on strategies of howtax can be used to increase the revenue will be an added advantage tothe State of CT which aims at realizing a multi-million dollar budgetdeficit which is to close by 30th April 2016. As the State of CTtax-man, I would ethically identify three taxes that the State couldimpose and would be able to increase the tax revenue very fast. Therecommended taxes would be linked to the understanding of elasticityand its capability to improve the State’s revenue. Proper taxationsystems which emphasize on tax elasticity plays a strategic role inincreasing State’s revenue.
The first taxi I will impose isimproving the taxes on tobacco products. This will be criticalstrategies as it will raise the State’s income and also improve thehealth standards of the citizens. Additionally, the imposed highertaxes on tobacco products will show the tax elasticity for it willchange the State’s income or output after managing the negativeinfluences resulting from the consumptions of tobacco products.Considering the increasing number of smokers in the State, theraising taxes on the tobacco products will inevitably increase therevenues (Gulland, 2015).
Secondly, wage and consumedincome taxes are effective strategies for increasing the revenue ofthe State. Typically, the payroll tax is hard to avoid and also apractical method of generating revenue in a given state. Taxing theconsumed income can prevent the loophole where the high wages earnersconvert the earnings into capital income with the aim of gainingfavorable tax treatment (Barro et al., 2017).
Lastly, gasoline taxes are also arecommended way of increase the State of CT revenues quickly. Itimproves the earnings because many people in the state depend on roadtransports to commute in various places in the state. Notably, thegasoline taxes can also be considered as an example of tax elasticitybecause the generated taxes can be dedicated to the construction ofthe State of CT roads and their maintenance.
In conclusion, effectivetaxation which focuses on tax elasticity plays a significant roleimproving the economy of a given state. Specifically, the taxation oftobacco products, wages and consumed income taxes and gasoline taxesare a sure way of generating revenues within a short period.
Gulland, A. (2015). Countriesshould raise taxes on tobacco, says WHO. BMJ, p.h3691.
Barro, J., Wilkinson, F.,O&#x27Brien, T., Smith, N., Fox, J. and Board, E. (2017). FiveTaxes We Should Raise. Really.. [online] Bloomberg View. Availableat:https://www.bloomberg.com/view/articles/2012-09-28/five-taxes-we-should-raise-really-[Accessed 11 Apr. 2017].
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