And an effective means to achieve economic stability taxes

5/25/2015 0:00

BAGHDAD - Imad Emirate

The developed countries were able to activate the role of taxes successfully on the ground, some of them used the tax as a means to achieve economic stability and the fight against inflation and deflation and has also managed to build a customs wall fortified through use garrison taxes, thus establishing an integrated economic Castle basis of which the local product support and make it able to international competition and the invasion of markets , that's what she said «morning» economic expert d. Wafa James Baldwin from the Faculty of Administration and Economy of Mustansiriya University.

She said, Iraq is no different from developing countries and may be worst-case between these countries of what they suffered from the past will deliver its ramifications on the future, The role protectionist tax was not lost on the Iraqi legislature, but the high degree of economic vulnerability and the high marginal propensity to consume, which resulted in a high inclination marginal imports, to meet the growing consumer demand under the conditions of local production pitiful and other factors able to cancel this role.

She noted that the absence of Lease role of taxes in achieving the goals of sustainable development impact negatively on the performance of the tax and economic role, and that the activation of the role of the Lease would positively contribute to activating the economic role.

She continued, impose taxes originally to achieve financial goals, but it may be imposed to achieve the economic goals, and do not use taxes alone to achieve economic targets, but they are used as part of the fiscal and monetary policy, which is intended to make changes in the economic situation, pointing out the importance of tax policy coordination with the intended to follow on public loans and the speed and degree of public spending and with the decision by the Central Bank of decisions are intended to influence the money supply in the market.

And it went on James Baldwin saying is basically the role of the tax system in the developed countries in achieving economic stability and address the problems of the economic cycle, which represents the most prominent features of modern capitalist economy, and should be starting define the concept of economic stability, it is the concept of compound includes the need to always strive to achieve two main first goal includes continued operation the national economy at full employment of economic resources level and then to avoid a recession, while the second objective is to avoid a large and sustained price rises in the general level of prices, ie to avoid inflation occurrence who is also a relative concept to crystallize its relativity through economic stability does not mean the stability of the national economy steadier never at a certain level, but allows changes in the level of economic activity and then prices within certain limits acceptable to the economic and social point level, that the pursuit of full employment of economic resources level, as one of the goals of economic stability, does not mean that the level of operating resources will reach the proportion of 100 percent, but the intended full operation of economic resources and practical sense allow the existence of an acceptable level of unemployment, this level of unemployment, the cost of social treatment is acceptable to become economically and socially, as accompany tackling unemployment big price hikes caused huge social damage, social benefits are due to tackle unemployment, become less much of the social costs resulting from the emergence of inflation, to talk about the concept of economic stability requires the need to analyze both inflationary and deflationary gaps.

She d. Fulfillment at the end of her speech that the tax affects the national income and public spending, and the nature of the tax base to play a role in the tax sensitivity.


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