Give a critical analysis of the two sides of the debate and, in your conclusion, give clear recommendation of how government should tax its nationals, both natural and legal entities.
Winston S. Churchill said, “I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”
There is debate on the above statement with one view holding that since tax is the guaranteed source of Government revenue, it only makes sense that Government should be planning development based on tax as that is the revenue it is sure of. Hence, there is no escape from a nation taxing itself into prosperity. The other view argues that any nation should rely on its nationals for both demand and supply. Hence, its government should leave its nationals with enough incomes to save and invest thereby creating supply, but also with enough to buy and thereby creating demand.
Give a critical analysis of the two sides of the debate and, in your conclusion, give clear recommendation of how government should tax its nationals, both natural and legal entities.
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