GROUP3

Claudia Cid, Álvaro Menéndez, Eva Ordoñez, Andrea López

A tax is a financial charge imposed upon a taxpayer (an individual or legal entity) by a state.

If you do not pay it, it can be punishable by law.

1. Taxes on income (direct)

It depends on the rent, property or wealth.

2. Indirect taxes

Everybody pays them upon basic products.

It does not affect on people’s incomes.

Capital flight, in economics, occurs when assets or money rapidly flow out of a country, due to an event of economic consequence.

For example let’s imagine a big mining enterprise which works in Africa and , for avoiding paying taxes in the country (the enterprise gets millions of dollar when extracting minerals), they claim that they have not got any benefits. So...Where does the money go?

A tax haven is a state, country or territory where, on a national level, certain taxes are levied at a low rate or not at all.

So the enterprise might have sold the mineral with a very low price to another enterprise which is set in a tax havens, like Caiman Islands or Switzerland.

Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts.

Tax evasion is an activity commonly associated with the informal economy. One measure of the extent of tax evasion (the "tax gap") is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported.

WHAT IS WHAT IS POVERTY?POVERTY?

Poverty is the dearth or lack of the necesary to live.

DO TAXES DO TAXES FIGHT FOR FIGHT FOR OR OR AGAINST AGAINST INEQUALITY INEQUALITY AND AND POVERTY? POVERTY?

The starvation and the infant mortality were decreasing.

The education and the health service were growing.

In poor countries there are big inequelities.

There is not a middle class. There are really rich people or really poor people.

74% live in poverty

People who pay taxes do not have any type of opinion for the government.

They can not access to education and to health service.

They do not collect salary.

INEQUALITY = Sometimes comes of the politic decisions

Bussines and rich people should pay their taxes and pay the salary to the employees.

Services should be free for all the people.

With the taxes that the millionaires pay we could make that all the boys and girls in the world could have an education and could access to public services.

CONCLUSIOCONCLUSIONN

We have done a conclusion about things of the taxes system that we thing that should change. And we made a comparision between developed countries and developing countries.

DEVELOPED COUNTRIES

DEVELOPING COUNTRIES

Not save taxes for luxury products

Have public services

Define better what luxury products are

The taxes that they pay should go for the country not for other countries

Reduce taxes in some products

They need to have salaries

Taxes should be pay depending on the economy of the citiziens

All the services should be for all the people independently if theey could pay them or not

OUR OPINION

Due to the fact that there are a lot of basic products that are taxed indirectly, people who have no-salary or have a low one, can not afford them. Also, there are a lot of basic products, like female hygiene’s ones, are not considered basic products, they are considered as luxury products so the taxes are very high.

From our point of view, tax heaven must be more controlled because of their facilities to rich people in front of poorer ones. It must be more regulated and penalized.

In my opinion, with reference to developed countries, taxes are badly distributed because people who haven’t got any way to pay have to pay the same that people who have a lot of money. In addition, if normal people who haven’t got any type of public function didn’t pay taxes, they could go to prison, whereas people like politicians sometimes don’t go to jail if they don’t pay taxes. This is an inequality.

Moreover, with reference to developing countries, although people who live in them must pay taxes they often aren’t able to access to the public services and people who work usually don’t receive any type of bounty because all this money is destined for rich countries. This is a complete injustice.

In conclusion, we personally think that taxes are really important to maintain public services such as education or health service as long as they are destined to that aim and not to enrich powerful people or to be sent, for instance, to tax havens. That is a sad reality in some poor countries, so as far as we are concerned public policies (of course not of corrupt governments) should be in charge of the situation and try to allocate taxes to the right purpose, that said, to improve the population's quality of life.