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Tax Revenues The Author Of This Report Term Paper

Tax Revenues The author of this report is tasked with describing how to compensate and direct the tax collectors of Elbonia to increase tax collections in a way that is effective and compensates the tax collectors commensurate with the work they are performing and the dollars that they are bringing in. The author of this report will offer a few options that will probably help a lot and a lot of them have little to do with what the collectors are doing wrong and more to do with why the tax collections are paltry in the first place.

Suggestions

First, it should be ascertained the real reason why the tax collections are fledgling. A lot of the reasons that tax revenues falter would have to be fixed through policy maneuvers at the governmental level or even just a bit of patience because getting blood from a turnip is just not possible. If the economy is on the rocks...

Another possibility is that there are loopholes or other gaps in the current rules and tax laws that are being exploited.
One example of this in action would be large employers in the United States who are intentionally hiring people to work just under 30 hours a week so that they don't realize the increased expenses (and taxes) of having to offer them health benefits. It is not a completely analogous example but one gets the idea that tax laws could be exploited the same way (Myers & Mears, 2013). A more applicable example would be people that incorporate as a sub-chapter S corporation in the United States so as to avoid FICA taxes on a lot of the earnings of the business and that only leaves federal and state taxes (Reilly, 2013).

As for what collectors can do, they can offer an amnesty program to first- (or even second-) time offenders so that they can reduce or even eliminate penalties and/or interest or even some of the original tax bill. However, repeat offenders should not be offered this as they will keep using that trick as much as…

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References

Myers, L., & Mears, C.A. (2013, August 13). Businesses claim Obamacare has forced them to cut employee hours - Investigations. Investigations. Retrieved September 17, 2013, from http://investigations.nbcnews.com/_news

/2013/08/13/20010062-businesses-claim-obamacare-has-forced-them-to-cut-employee-hours-lite

Reilly, P. (2013, August 25). S Corporation SE Avoidance Still A Solid Strategy

Forbes. Information for the World's Business Leaders - Forbes.com. Retrieved September 17, 2013, from http://www.forbes.com/sites/peterjreilly/2013/08/25/s-corporation-se-avoidance-still-a-solid-strategy/
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