Outline four reasons why government levy custom duty.

      

Outline four reasons why government levy custom duty.

  

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Martin
Reasons why government levy taxes.

- Defense Spending

One of the roles of government is to provide for a national defense. Most governments today do this by creating a military. The costs of maintaining a standing army are significant and include the costs of training, housing, equipping and paying soldiers for their services to the country. Defense spending also includes the cost of developing new technologies used for military purposes such as more effective weapons and unmanned technologies.

- Retirement Programs

A significant chunk of foe annual federal budget goes .towards paying for retirement programs like Social Security. Social Security provides retirement benefits to individuals who have paid into the retirement systems over the course of their working lives, in addition to Social Security, the government also must pay for pension plans for former government employees who are now retired.

- Interest Payments

Many governments have borrowed significant amounts of money and must pay interest on that debt. This debt is held by a variety of people and organizations including private citizens, government agencies and foreign governments.

-Altering Behavior

The tax laws in any country are used to alter behaviors in addition to raising revenues. Individuals have a limited supply of money and so increasing taxes on behaviors the government dislikes can restrict people from participating in them. For example, when a government wants, to reduce cigarette smoking, it can increase the taxes on cigarettes making them more expensive for people to buy. If a government wants to increase the number, of companies that offer health care to their workers, it may pass a law offering increased tax deductions for payments that went toward workers health care.


marto answered the question on January 30, 2019 at 09:15


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