Answer to Question #270470 in Accounting for Another you

Question

1. What is taxation?

2. What are the purposes of primary taxation?

3. What are the purposes of secondary taxation?

Answer 1

Solution:

1.). Taxation is the imposition of compulsory levies, namely taxes on individuals or entities by governments

A tax is a mandatory financial charge or other type of levy imposed on a taxpayer by a governmental organization to fund government spending and other public expenditures.

 

2.). The primary goal of primary taxation is to generate revenue to cover massive government spending and economic development. The majority of governmental activities must be funded through taxation.

 

3.). The secondary purposes of secondary taxation include ensuring price stability, control of cyclical fluctuations, control imports and reduction of inequalities in wealth and income.