EXPLAIN THE ADVANTAGE OF:
1.Consistent policies worldwide. No more concerns about tax rates vs. Health care vs. Individual freedoms from one country to the next.
2.Military could be downsized to a force large enough to deal with terrorist and local squabbles
3.Immense tax savings due to the economy of scale. Only fund one complete government as opposed to a hundred
DISADVANTAGE:
1.No proper way to account for cultural differences
2.Lack of competition between nations.
According to the benefit concept, consistent tax policies serve a purpose which is identical to rates incurred in private transactions. They help decide what a federal government does and who pays for its services. In return, the public sector allocates resources that directly respond to citizens' desire.
Secondly, for many states, counterterrorism is regarded to be a top national security priority. Tax policies, such as low marginal rates, help many federal governments establish platforms that allow low level police officers in various agencies get the job done. Such discretionary funds availed to military units also help them easily adjust to circumstances they find when countering terrorism.
Thirdly the profits that come with immense tax saving are used to effectively finance roads and bridges. This is made possible through reduced levies on motor fuels and tolls. Payroll taxes used to fund social protection often reflect the connection between benefits and contributions. However, this correlation is often weak as contributions are not accounted for by individual donors.
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