My initial Response,
Economics plays an essential role in shaping discussion in policies related to various types of taxation. For example, economics influences how governing agencies develop policies on household taxation. Household income emanates from various sources such as wages, other diverse forms of non-labor remunerations, and sales of personal wealth or items (Pavlova, 2016). When developing household taxation policies, the governing agencies must embrace the fundamentals of effective tax designs as outlined in economics. Such an approach emphasizes neutrality and fairness when generating such policies. Taxing agencies must uphold policies that embrace equality and fairness by ensuring that taxation should be based on households’ incomes and avoid any favoritism (Bahadur, 2019). When developing taxation guidelines, the agencies should avoid adversely affecting the taxpayer’s decisions in their daily lives. Hence, individuals with households and businesses with a higher inflow of income should pay higher taxes than those with lower incomes. Governing agencies should also embrace similar strategies when developing import taxation policies. The gross domestic product significantly influences various governing agencies’ taxation policies since the nation’s economic status determines the tax payable by the citizens. Such facts illustrate how economics affects taxation policy development.
Among the main economic concepts is that of supply and demand. When working in the airline industry, employees must guarantee that they offer services that meet user’s requirements. I remain highly motivated to embrace innovation, enabling my company to render services that align with customer’s demands in my career. Such an approach ensures that the firm retains its competitive edge in the market. Understanding economics is crucial for me since it would enable me to improve my life’s financial aspect. For example, when participating in various investments, economics will allow me to analyze the potential costs and benefits, enabling me to make better decisions.
Bahadur, J. K. (2019). Guiding principles of good tax policy: Is there an association between the principles of the income tax of Nepal and the principles of good tax policy suggested by AICPA? Pravaha, 25(1), 71-86. doi:10.3126/pravaha.v25i1.31936
Pavlova, M. (2016). Tax impact on household income. Economics and Business, 29(1), 76-81. doi:10.1515/eb-2016-0024