With multinational corporations protecting their benefits, the crucial victims of such crimes are the law abiding tax-payers, who have to deal with high taxes and cuts in benefits at the same time. If these cases do not receive immediate effect, the government will restrain hopes and drag economies deeper into the recession.
Decline Tax Rates - Individual and Corporate Taxes.
It is quite evident that the corporate income tax differs from the individual income tax. Firstly, it is a tax based on net income/profits, with permissible deductions of doing business. Secondly, it applies only to businesses that are corporations-not partnerships or sole proprietorships. The corporate income tax is the most poorly understood by which the U.S. government collects money. Most economists came to the conclusion that it is known to have little efficiency and is not very defendable. They also realized that it causes significant alterations in economic activities.
Economists believe that the fundamental problem with the corporate income tax is that, ultimately; only people can pay taxes. Economists have also struggled in determining which groups of people the burden of the corporate income taxes fall (Norton, n.d.).
Despite the recession, in 2007-2012, corporate taxes paid by all enterprises in Canada increased by approximately 10%. This was the result of the government lowering corporate income taxes to attract more investments and therefore having a positive effect on revenues. This was a measure to offset the negative effects of the recession, and ended up being a benefit to our economy.
Tax evasion should be dealt with vigorously. But in a recession, when citizens and taxpayers are suffering due to scarcity caused by the economic downtown, the need is greater than ever to detect and prosecute those who are attempting to avoid paying their taxes (Norton, n.d.).
Taxes and Public Services .
In 2011 the UK estimated that the loss of revenues were around £1 billion or 1.
