UK Income Tax: Growing Concern Over Inequality and Poverty - Essay Sample

Introduction

Increasing taxes is one of the most debated topics that raise dynamic views from society. A growing concern has been on the national income rates and how this resources are equally distributed among low-income families. Most of the activist have perceived that the income should be delegated to welfare programs. The step aims to address the narrative that inequality in national income has contributed to the increasing rates of poverty. Similarly, the case has lately affected the UK government expenditure plans since it attempts to address the rising trend of issues affecting vulnerable groups in society.

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UK government is planning to increase tax on private businesses to fund welfare activities.

Analysis

The objective of government expenditures is to have law and order in promoting equality in determining different expenses (Allayarov, 2020, p. 64). Social welfare expenditure becomes part of the government's financial plan in many ways. Firstly, it transfers it through government agencies and through welfare institutions. With the rising economic impact of COVID 19 on the world's economy, every country strives to develop subsidiary programs and strategies that will boost its economy.

The UK budgeting strategy takes place amidst the outbreak of the COVID19 pandemic. Thus, the government is well prepared to protect its citizens from economic impact. It also plans to support public services by enforcing new taxation policies. While the economy continues to decline, focusing on the most vulnerable groups is an essential strategy to curb with different financial crisis. However, the current plans in place have not been well-established to consider private businesses as the primary targets for increased taxation.

Most of the private businesses have not raised significant complaints regarding increased taxes on their businesses. Thus, relating these to the future challenges awaiting the UK economy could raise other concerns regarding the taxation of private business. It could plan to increase taxes in both public private entities. According to Allayarov, (2020, p. 64), tax reforms that increase taxes on private entities discourage investment, increase cases of tax evasion and reduce the rate of sales. Furthermore, this will have an implication on the government revenue since the strategy can pose a major crisis and threat in balancing trade-offs of public policy. This will further increase the regulatory burden associated with the trade. Leaders should be committed to the law eve when responding to serious issues that impact on the lives of citizens. A government contained by law should have its policies based on the views and rights of the people,

Increasing taxation can be perceived as oppressive restraints that limit business owners from freely conducting their businesses. It affects the freedom of business, and this realizes concerns regarding the validity and freedom that people have regarding businesses (Allayarov, 2020, p. 64). The consent of the people plays a primary role in determining tax reforms required in any state. Furthermore, the tax regulation strategy and policies are critical in establishing the right guideline and successfully imposing any law without negatively affecting people.

Leaders should play a primary role in advocating for free trade limited government and individual rights when addressing crises affecting the private sector. While the current pandemic poses a major threat to the UK economy, the government should incorporate models that equally raise solutions to the long terms effects that the situation has on the economy. It is the role of every government to enforce measures that benefit the welfare groups. However, this should rely on government income rather than a single entity or sector. Based on the current taxation planning in the UK, the welfare programs need more planning than funding.

Tax saving opportunities are centered on maximizing the use of allowance reliefs and tax-efficient investments. Thus, each individual has the right to these allowances and saving rates and dividend allowances. The strategy toward enhancing a country's economy is to have these components maximized at every capacity. This will ensure that there is a scope of way to take advantage of tax breaks. Personal allowances can, therefore, be used when necessary.

While the strategy on increasing taxes of private business raises major concerns regarding equality and freedom of trade, the government has the opportunity to mobilize different resources that support vulnerable groups. The step is particularly beneficial where income from higher and additional rates taxpaying private entities to non-basic taxpaying entities. For those with investments, the process can be facilitated through the transfer of income-producing assets from higher-taxpaying entities. The processes, however, challenged with many issues such as tax laws and other factors surrounding the rights to trade and ownership. Through their process of tax transfers, the taxpayers would result in capital gains and adoption of neutral tax measures between a private and public entity. Furthermore, the transfer will also affect the UK to decide public institutions which are exempted from the inheritance of taxes without limit.

Economic liberalism advocates for low taxation and deregulation of different aspects affecting economy. Thus, increasing funds to fund welfare activities should be fair by considering appropriate measures that will result in well-strategized actions when funding the welfare activities. Funding welfare activities is a practice that requires collaborative measures from, every stakeholder in any state However it should adopt different measures that focus on having the right models put in place to improve taxation process.

In my cases, private entities are often engaged in tax evasion (Allayarov, 2020, p. 64). Tax amnesty measures can be considered by enforcing. In terms of the effect on tax revenue and welfare, the effect that the plan will have on private entities will depend on the distribution of the new measures and influence of the new taxation policies.

Economic sustainability relies on n many factors. The country needs to be more efficient with the use of available resources. It should further reduce different factors that negatively affect the country's economy. To achieve suitable models of funding the welfare activities, then UK should instead consider and analyze different effects that the move will have on individual households rather than considering taking policies from collective institutions. Allayarov (2020, p. 64) advises that, to support different welfare activities, the government should further review the spectrum of its economic policies in regard to private property with the focus of maintaining productivity. Interventions to have a free market are also critical in facilitating the new policies. The process ensures that the organization achieves its goals.

On the other hand, increasing tax on private property could offer a dynamic solution to the current crisis facing the financial systems. It could provide an opportunity to review different models affecting the current economy by reviewing different ways that corporate entities contribute to economic sustainability. The step is important since it would advocate for better models to fund welfare programs,. Apart from raising issues from the business owned privately, it would also offer an opportunity to review social models in terms of find allocation income issues and expenditure planning in the country. Thus the step will promote holistic models, and this also provides an opportunity for the government to strategize methods of promoting sustainability programs based on the most needed resources to boost the welfare programs.

Private property is a legal concept that is determined by political systems in any country. The law often ideas with proper law and successful enforcement of the strategy is based on public expenses. By acting to protect the rights of such property, the owners should focus on promoting fairness and equality in the enforcement of the new taxation policies. A property tax often relies on the value of a property. It is imposed based on government direction and policies. They are uniquely identifying, and this is attributed to different rights of business ownership. Based on economic liberalization models, the restriction of controls should focus on the government. It aims to increase competitiveness in any business environment. Besides, it focuses on creating lower tax rates and putting fewer restrictions on domestic and foreign capital. The process is however challenged when economic performance is threatened Reading such barriers is important in promoting successful programs

Unrestricted flow of capital between nations could affect the country in different ways. The efficient control of these models can be achieved by increasing protectionist policies that aim to improve trade and reduce the influence of government on the private entities. Private companies undertake profitable projects with the aim of achieving higher growth in every cap[city.

Accounting for different demographic effects such as age family sizes is critical in funding for different welfare programs. In an effort to fund welfare programs, a government should, therefore, introduce policy reforms and analyze different effects that such economic measures could have on individual parties. The burden of taxes' can significantly fall on low-income families. Thus the understanding distribution of incomes will position any country to introducer further programs aimed at increasing or lowering taxes to different groups of people. Inequality in the distribution of income should define changes and long terms goals.

Social welfare expenditures vary depending on the rate of spending. Government has to focus on finding programs such as food education and healthcare Te government plays a vital role in providing public assistance such as the social insurance benefits Maximizing the income redistribution programs is critical in funding different welfare programs. The plan to increase taxes will, therefore, facilitate this type of needs and resources that the government requires to support the welfare programs. The strategy could have a significant impact on the economy. The process could however, benefit different groups.

The government plans to increase funding at different capacities. The plan could take place to address the backdrop cased by the global outbreak of COVID 19. However, the fundamentals of the UK are strong and thus less affected even with increased funding of the welfare programs; however, the only challenge is that it needs careful planning to support its economic security throughout the economic disruption.

The further budget support the government plan to have a sustainable tax system and will help families with the cost of living although the parliament plans to create ax system policies that fit the challenges and opportunities in the 21-st century economy, the private sectors will be most affected. Furthermore, the current plan could provide a chance to focus on tax systems that promote resource sustainability and other measures that support people at every capacity.

References

Allayarov, S.A., 2020. Combination of fiscal and stimulating functions of the tax system to ensure financial and economic security. American Journal of Economics and Business Management, 3(1), pp.64-69.