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How Can Tax Law Affect Economic Growth And Finance Development?

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How Can Tax Law Affect Economic Growth And Finance Development?
How Can Tax Law Stimulate Economic Growth and Finance development?
INTRODUCTION
Tax is one of the most revenue sources where each government relies upon to exist sustainably and discharge its public responsibility. Therefore, this essay tries to highlight how this revenue source of the government is controlled and administered to bring economic growth and finance development. Tax law is the mechanism whereby the government designs to ensure the proper collection of its tax. In this connection, tax law also plays its part in achieving economic growth and finance development in a country. As a corollary, the essay is structured in three parts which includes the definition of tax, the roles of tax and the role of tax in stimulating economic growth …show more content…
2.5 Restrictions and prohibitions
Tax law can also stimulate economic growth and finance development by restricting and prohibiting some hazardous goods in the society. By restricting and prohibiting, tax law plays two protection roles. The first is protecting public health and the other is discouraging the usage of these materials.
2.6 Means of establishing social security system
Tax law on the other hand can stimulate economic growth and finance development by facilitating a social security system to exist. When a tax is collected, the government establishes a social security system which helps the unemployed, retired and other section society who requires assistance to benefit.
2.7 Limiting negative externalities
Controlling the negative externality effect is also the other area where tax law puts an important pressure to combat activities prone to jeopardizing other segments of the society. This law devises a mechanism to alleviate those problem associated with the externality effects due to hazardous products released from factories to the society which in consequence may pollute the environment and the health of the community at
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