Is it Correct for Successive Governments to Manipulate the Personal Research Paper

Is it Correct for Successive Governments to Manipulate the Personal Taxation System for Economic Purposes - Research Paper Example Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs)† (Balachandran 2010, p. 146). Taxation in the UK may involve payments of two different layers of government, the National Government and the Regional Government. The central government taxes include revenues and Customs. The central Government revenue comes primarily from Income Tax, National Insurance, Contribution of VAT, Corporate Taxes and Fuel Duty. The income tax forms the single largest source of revenue collected by the government. In the UK, each person has a taxable income and personal allowance up to a certain amount, free for everyone. The success of the personal taxation system depends upon the principles of taxation procedure. Taxable income is in different ways - depends on income and employment status. â€Å"These include PAYE (Pay As You Earn), self-assessment, tax deducted at source, and one-off payments† (Ways You Pay Income Tax n.d.). There are four important canons of taxation. They are economic principles, it includes the cost-effectiveness and how should cost less to collect the taxes than the revenues. A system of tax in the UK is reflected the communal values and power. To create a taxation system, a nation makes the choice of distribution for the tax that will pay the taxes and how much amount will pay for the tax. And the government can decide how will spent the collected taxes. The government collects taxes in a cost-effective manner.