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Government Inefficiency and Policy Implications of Economic Research

Sections 861(b) and 862(b) state generally how to determine taxable income for a taxpayer with income sources within or without the United States after such source has been determined. Regulation 1.861-8 provides more information on allocating state and local taxes to U.S. – and foreign-source income (Kozub 2010, p.1). In return, we could see the effects of taxes in our country thru, for example, roads for better accessory of goods coming from farm to local markets and for better transportation. public schools to ensure the education of our children and our children’s children. and public funds to support and aid the citizens in terms of calamities and unforeseen disasters. Well, these are good aspects of tax in our society in which it ensures a good future for us and for the next generation. What seem to be erroneous so to speak now are the urge of the government and the abuse in the use of tax. We all know that the government highly depends upon its citizen’s support to make its substructure work. In the article made by Crane (2010, p.1), she criticized and questions the imposition of tax to the extent that everything that people do, the government will levy tax. It is also shown in her article the question on blurred distinction between income tax and property tax wherein the so-called right to jus fruendi or the right to use the fruit of the property is assumed to be just a constitutional right that is vested upon the citizens because of the unclear dissimilarity of the property and income tax. She made use of the farm, being a property as an example wherein If the value of an asset that one assessor claimed had arisen in any one year, perhaps when the crops were first harvested, could be taxed again in another year (simply because that first year’s base was used again as the measure of the tax), and then again when the value was transformed into a security, and then again when that security was transformed into cash, what was the difference between a property tax and an income tax? (1). Issues and Problems on taxes What I want to raise here as an issue would be the redundancy of the taxes that are being imposed on the citizens. The government is now being misunderstood because instead of him intervening in the affairs of the people, it is now the people intervening in the affairs of the government and making profit out of it. Thus, people discover the government not as a privileged position to serve the people, but rather, as a situation and a place of income, using the money of its citizens. As a result, heavy taxes are levied and other forms of it are implemented to gain more income, having in mind that the people could not resist it because it is mandated by the law. Moreover, the espousal of income taxes did not inevitably flow from economic forces, but rather was conditioned by social and political power and complex historical processes (Mehrotra 2010, p.1). History will show us that these kind of tax is a by-product of the excessive expenditure of the government in wars that they are engaged to or the destruction incurred are in large scale. They put the burden to the people to restore the economic power of the state, therefore, making the government to be financially strong again in the international arena because state and the government can hardly be distinguished nor separated. The government dictates what the people should do in