Global Tax – Some Concept Explored
September 12, 2011 | personal finance
The World economy runs on various taxes contributed by different countries to the World Exchequer. There is some complication due to the various opinions and the main objectives of the tax on the financial institutions. It is also to create a fund for the funding of various global problems. The main objective of the tax on the financial institutions is the transactions and it is to recover the fiscal costs. The main objective of the carbon taxes is to address the issue of environmental damage. This is created by the main objectives of the tax, mainly on the financial institutions.
A true global tax will require some agreements among the major countries, the aspects will be,
- There should be objective for the tax, like the financial institutions tax should be levied only on banks or other financial institutes.
- Similarly, the global carbon taxes will be also confined to fossil fuels and this only to large energy sources.
- The definition of the Tax bases, it should be an example for the taxing of the assets and liabilities of the banks. There could also be one or two exclusions.
- There should be a tax collection mechanism, which body will be given statutory powers in order to collect global taxes?
But still there are some complicated arrangements in order for the collection of the taxes. Generally, Nations guard their tax policy as their sovereign right. They also very much reluctant in order to share those powers with other international bodies. Then there is also a great debate in the sharing of the revenue and at what percentage it should be shared? There are many interrelated matters on the issue of the introduction of the global tax. Then finally there is the issue of Efficiency, revenue and the equity considerations and they may vary.