Term paper Essay Example | Topics and Well Written Essays - 1250 words - 3

Term paper - Essay ExampleApparently, taxation policies as well as authorities spending cause considerable effect on the economy and future prospects of the government as far as international relations are concerned. Taxation indemnity must take into account the fundamental rights of all workers in an economy (Mishkin 34). The government should particularly take into account the total population of its workforce during a precondition financial year even as it plans bring the fore the cipherary estimates. Since the budget of most countries is largely dependent on the local taxes as the main(prenominal) source of funding, the wage rate per worker will be a key factor. Taxation policy should not compromise the workers expertness to meet their day-to-day needs to keep life moving (Mishkin 34). Hence, fiscal policy makers must take into account the wage rate, currency qualification topically and internationally, and the cost of living. The government must therefore consider the c urrent situation of its labor market before making any critical additions regarding purchasing goods and work, distributing enthral payments, and collecting taxes. If the current trend were unfavorable to the economy and labor market, the government would then have to revisit its fiscal policy to further the situation (Mishkin 34). An growth in amount of taxes that employees pay to the government will adversely affect their disposable income. In most cases, the taxation policy that triggers increases in taxes paid to the government tends to lower the purchasing power of most households. Thus, a considerable number of people working in manufacturing and service industries among other forms of industries will have to predate certain commodities that were previously a necessity to them (Agell 25). The main area of concern for fiscal policy is looking into ways in which changes in the government budget affect the overall economy. The changes may not only compromise the capacity of the government to meet its policy needs but also providing essential services to the people. Heads of countrys finance or treasury department are on the verge of drafting fiscal policy that is realistic and achievable considering the strength and sustainability of the current economic state of the country (Agell 25). The flagship annual document of finance ministry essentially reviews the growth and developments of the economy. Of critical value is the capacity of the economy to withstand the forever changing economic, social and political prospects. Fiscal policy further affects the quality of labor in the market. If the government spending surpasses its total revenues, one of the major options it employs to save the situation is raising the taxation rates. The increase shall take a toll on struggling employees, who in most cases hardly meet all their necessities. Hence, policy prospects should be workable and sustainable in the short term and long term despite the impending chall enges to the economy during implementation of its programs. Under such circumstances, employees and business sector organizations will essentially react by initiating strategies of ensuring the government policy does not compromise their day-to-day lifestyle (Agell 25). In the wake of growing concerns about painful fiscal policy, most employees as well as prospective workers have resorted to look for employment opportunities in