The income tax and the goods and servicesharmonized tax (gsthst)

As of right now, the COVID 19 epidemic has been under control, peoples lives and health are being looked after, and these outcomes positively impact global campaigns for epidemic prevention However,. As of right now, the COVID19 epidemic has been under control, peoples lives and health are being looked after, and these outcomes positively impact global campaigns for epidemic prevention. However, the severe global economic downturn that will last from 2019 to 2021 and the economic measures taken to lessen the effects of the Covid19 pandemic have raised debt levels globally as well as in individual nations. both in developed and emergingdeveloping markets. Some governments are considering raising taxes in the upcoming years to balance their budgets in light of their heavy debt loads. However, this is not a particularly effective measure from an economic standpoint.Global government debt increased by 99 percent of GDP in 2020, the fastest annual increase in 50 years and the highest level recorded. Government debt in EMDE increased to its highest level since 1987, representing 63 percent of GDP. More than half of lowincome countries are distressed or at high risk of entering debt; some have already experienced debt default, and some have already completed or are currently undergoing debt restructuring.Figure 1: Government debt 19702020 Source: Kose et al. (2021); World Bank. The Covid19 pandemic may just be the spark that ignites and exacerbates debt risks in emerging economies.Different types of taxes exist today. The income tax and the Goods and ServicesHarmonized Tax (GSTHST) are todays two most common taxes (Cheng. et al., 2019, p.5). Although the government benefits from both of these taxes, the taxation policies differ significantly. Individuals and families with low and modest incomes can use the GSTHST credit, a taxfree quarterly payment, to offset the GST or HST they have to pay. Additionally, payments from territorial and provincial programs might be included. When filing their taxes, lowincome individuals are automatically eligible for the GSTHST credit(Gamarra. et al., 2009). The government levies income tax on income. It is one of the significant sources of revenue for the federal government. The revenue from taxes is invested in the growth of the nation. The tax percentage is directly inversely correlated to an individuals income, so the more money they make, the more they must pay in taxes.

As of right now, the COVID-19 epidemic has been under control, people's lives and health are being looked after, and these outcomes positively impact global campaigns for epidemic prevention However, the severe global economic downturn that will last from 2019 to 2021 and the economic measures taken to lessen the effects of the Covid-19 pandemic have raised debt levels globally as well as in individual nations both in developed and emerging/developing markets Some governments are considering raising taxes in the upcoming years to balance their budgets in light of their heavy debt loads However, this is not a particularly effective measure from an economic standpoint Global government debt increased by 99 percent of GDP in 2020, the fastest annual increase in 50 years and the highest level recorded Government debt in EMDE increased to its highest level since 1987, representing 63 percent of GDP More than half of low-income countries are distressed or at high risk of entering debt; some have already experienced debt default, and some have already completed or are currently undergoing debt restructuring Figure 1: Government debt 1970-2020 Source: Kose et al (2021); World Bank The Covid-19 pandemic may just be the spark that ignites and exacerbates debt risks in emerging economies Different types of taxes exist today The income tax and the Goods and Services/Harmonized Tax (GST/HST) are today's two most common taxes (Cheng et al., 2019, p.5) Although the government benefits from both of these taxes, the taxation policies differ significantly Individuals and families with low and modest incomes can use the GST/HST credit, a tax-free quarterly payment, to offset the GST or HST they have to pay Additionally, payments from territorial and provincial programs might be included When filing their taxes, low-income individuals are automatically eligible for the GST/HST credit(Gamarra et al., 2009) The government levies income tax on income It is one of the significant sources of revenue for the federal government The revenue from taxes is invested in the growth of the nation The tax percentage is directly inversely correlated to an individual's income, so the more money they make, the more they must pay in taxes Raising the personal income tax is less effective, especially for those who face high marginal rates and have the choice of how many hours they work (earners at both ends of the income spectrum) Furthermore, bracket creep will cause an increase in these financial costs over time In contrast, it might be anticipated that a broad-based consumption tax would cause less behavior distortion This is because many people may have less discretion regarding their consumption This applies to other types of consumption, such as dining out, but it is most relevant to "necessities" in household budgets Instead, GST/HST encourages saving and investment and improves the economy, whereas income taxes penalize savers and reward spenders Lowerincome households would still need to be compensated for any GST increase Furthermore, taxing people on what they take from the finite resource pool through consumption rather than what they add to the pool through income is only fair Global government debt increased by 99 percent of GDP in 2020, the fastest annual increase in 50 years and the highest level recorded Some governments are considering raising taxes in the upcoming years to balance their budgets Raising the personal income tax is less effective because it is unfair to those who face high marginal rates Increasing GST/HST is least detrimental to long-term economic growth because low-income individuals are automatically eligible for the GST/HST credit when filing their taxes However, lower-income households still need to be compensated for any GST increase The tax percentage is directly inversely correlated to an individual's income REFERENCE Cheng, G., J Diaz-Cassou, and A Erce 2019 “The Macroeconomic Effects of Official Debt Restructuring: Evidence from the Paris Club.” Oxford Economic Papers Gamarra, B., , C Braga and M Pollock 2009 "Debt Relief to Low Income Countries: A Retrospective." In Debt Relief and Beyond, edited by C Braga and D Dömeland, 2-3 World Bank: Washington, DC Kose, M A, P Nagle, F Ohnsorge, and N Sugawara 2021 Global Waves of Debt: Causes and Consequences Washington, DC: World Bank World Bank 2021 Global Economic Prospects October World Bank: Washington, DC  .. .The Covid-19 pandemic may just be the spark that ignites and exacerbates debt risks in emerging economies Different types of taxes exist today The income tax and the Goods and Services/Harmonized... for the federal government The revenue from taxes is invested in the growth of the nation The tax percentage is directly inversely correlated to an individual''s income, so the more money they... included When filing their taxes, low -income individuals are automatically eligible for the GST/HST credit(Gamarra et al., 2009) The government levies income tax on income It is one of the significant