Those who argue to oppose a flat tax system that the package doesn “t the difference between poor and rich. It should be noted that it is much easier for a rich person for 25 percent their income and pay for the maintenance of a healthy lifestyle in relation to the poor, who are hard hit by the scattering of a quarter of his paycheck is. exactly the same reasons in many countries around the world a flat have adopted tax-system, but with certain restrictions.


Hong Kong – Case Study

prime example of such a nation is in Hong Kong. Hong Kong is very progressive applied to the remuneration that a person with a fat content is paid guaranteed more than a working class family. Several other economies in the world have taken steps to make changes in their overall tax rate that a uniform distribution will allow the gains have been implemented. There are four tax brackets in Hong Kong, namely 2%, 8%, 14% and 20%. Due to a tax rate clearly marked, is to know it is easier for most people their duties. That is not it! Hong Kong also allows the citizens to keep a large share of income devoted to charity, adult care, child care and pensions. The tax system is taken care of so successful in Hong Kong even as the average citizen about the taxes on wages and income. Note also that the tax system is flexible under certain conditions, but is largely eliminated when it comes to corporate profits and private spending comes. The corporation is approximately 17.5 percent and in some cases, it is 18 percent.


fixed rate in the U.S.

Policy

United States and some other Western countries, the tax firm established Hong Kong as a prime example of a tax model. For example, it allows the system companies to the tax before paying real dividends paid. If implemented in the United States, this process eliminates the need to pay taxes twice, once on the income and the other on the dividend. It is because of the long-term impact of the system that very few states in the USA have already adopted a flat rate of household income.


Hong Kong system of setting the tax rate is taken into account by many nations, including Poland and Greece. The theory has already won the approval of the newly formed United Nations in the world, especially the former communist regime. It is in the interests of the peoples of the world , the system of the Hong Kong tax, the study of a solid foundation for the economy of the Prime Minister in the world after decades.


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