Taxation Policies and The Government - 587 Words

In many countries, almost every country, government revenue usually came from taxation and government’s operation to be fundamental funds that use to spend on policies. If the government willing to spend more while their budget is inadequate (Budget deficit), the another way to find the money to satisfy their expenditure is to loan the money from the others, the process that government creates debt from borrowing money is called government debt, public debt, or national debt, which is like people loan from the financial institution but it just own by government, In present, there are many controversial between government debt create cost on future generation or not create cost on future generation, how can government debt create future generation cost, and how it will not create future generation cost. All of these we will be discuss later in this paper. Before we go any further, we need to know how and where governments can borrows money. Government can get the money by issuing securities, government bonds, or bills. And government can borrow money inside the country, internal, and outside the country, external. There are many reasons for government to creates government debts: government has problem with collecting taxes, government needs emergency money result from unexpected wars or natural disasters, government aim to creates economics growth or prevent recession in the economic, and etc. There are two major groups of people arguing that government debt will put cost toShow MoreRelatedThe Bush Tax Policy During George Bush Administration963 Words   |  4 PagesIntroduction The fiscal policies refer to the way in which the government affects those activities in the economy of a country. The major common fiscal policies that occur in the economy are the government expenditure and the level of taxation and they are usually advocated by the Central Bank of the country. 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