Bandola, Hannah

BSLM-4A

In this reflection, I’ve summed up the introduction of Taxation to these slight

words. Taxation is defined as a way that the government able to generate or collect
revenue from the citizen of one’s nation through different sources. It is forced payment
which includes all of people and corporate pay for government. It is a way of increasing
government’s revenue by forcing fees on the government units with providing protection
to taxpayer’s property. So forcing tax helps to increase the economic growth of the
government, and stabilize the price. In addition, the money collected from the taxpayers
is very helpful to fund the government to serve the social purposes in their country like
funding projects related to health care systems, and education systems.

As what I’ve learned from the video, there are two types of taxation, direct which
are paid by the taxpayer directly to the government, and indirect which are collected by
an intermediary like a retail store from the consumer. This tax is applicable to
organizations and individuals. I would like to highlight what I learned on business
consumption tax. Consumption tax we consume for sale and use taxes, tariff and duties
from government take taxes. Thus, consumption taxes contains three types which are
sales tax, use tax like value added tax like as students going to McDonald’s or Jollibee
when they put a price in happy meal we didn’t know it take 1 percent for value. Examples
of consumption taxes include retail sales taxes, excise taxes, value-added taxes, use taxes,
taxes on gross business receipts, and import duties. These taxes are borne by consumers
who pay a higher retail price for the good or service. The higher price includes the
consumption tax, which is collected by the vendor and remitted to the appropriate
government. Consumption taxes are often levied at different rates on different
commodities according to perceptions of whether a commodity is considered a necessity
such as food or a luxury such as jewelry.

A commonly cited economic benefit of a consumption tax over an income tax is

that a consumption tax does not penalize a taxpayer who earns and saves in early years
and then consumes in later years, relative to a taxpayer who does not postpone
consumption. VAT applies to practically all sales of services and imports, as well as to
the sale, barter, exchange, or lease of goods or properties tangible or intangible. The tax
is equivalent to a uniform rate of 12%, based on the gross selling price of goods or
properties sold, or gross receipts from the sale of services.

I hope Ill learn many things about taxation more which will help and will be able
to apply in my daily life. Also, I know the taxes have many different types and our
instructor explained well the concept of all types of taxes and why it is important. For
income tax topic which is designed to us to go more in-depth understanding of how it can
affect individuals and businesses.