Tax Policy: Shaping the Tax System

The primary purpose of taxation is to raise revenue for the government to fund public expenditure and services.

Other purposes of taxation include redistribution of wealth, influencing economic behavior, and achieving social policy objectives.

The key elements of a tax system include the tax base, tax rates, tax reliefs/allowances, and tax administration.

<p>Important tax policy design principles include equity, efficiency, simplicity, transparency, and stability.</p> Signup and view all the answers

<p>The UK tax system has been significantly shaped by past events such as the World Wars, the rise of the welfare state, and the shift towards a more globalized economy.</p> Signup and view all the answers