Tax Incentives and Tax Benefits Free Samples †MyAssignmenthelp.com

Question: Discuss about the Tax Incentives and Tax Benefits. Answer: Tax Incentives Tax incentives and tax benefits are an important tool that the government uses to reach out to its citizens and help them with issues that are of national importance. Tax incentives help to reduce the burden on citizens and also help to make some services affordable to the public. The Australian government uses tax benefits to offer incentives in three key areas which are namely the purchase of housing properties, the purchase of private health insurance and superannuation (Carey, 2006). The government assists people through these policies to have a chance to live a self-reliant life and also have access to basic needs such as health and housing. The governments help has made the services affordable to everyone which helps to provide good living standards among the citizens of Australia. The use of these policy helps to encourage people to lead better lives that may support the growth of the nation and also have citizens who are happy with the government operations (Waldie, 2005). These kinds of policies are justified. The reason being the government has a responsibility to care for its citizens therefore the use of these policies helps to administer that role to the country. The policies are justified as they help to improve the lives of people which helps them lead better lives. The use of tax incentives for instance in housing is critical and justified because it helps people to acquire affordable housing and lead sustainable development. Policies such as this offer direct gains to people thus enabling them to live lives that are healthier and responsible. Such policies are also justifiable given that they increase spending in the economy leading to the awakening of industries that are currently in recession (William, 2004). There are alternatives to tax benefits of these kind that a government may opt to embrace. The government can opt to use an alternative such as issuing grants for people to access in a certain sector. The other alternative could be the use of low interest rate loans for investments in certain fields. The use of low interest rates can be applied like in housing loans and mortgages to achieve the same effect as the tax incentives. The government can also adopt legislation that is meant to offer free services to the public to help make basic needs accessible by all persons in the country (Lisa, 2000). The alternatives however do not compare to incentivized taxing because it helps to reduce pricing in the long run and encourages various people to sign up for the program. References Carey McWilliams. (2006). Southern California: An island on the Land. Los Angeles. California: University of California. D.J. Waldie. (2005). Holy land: a suburban Memoir. Los Angeles: Norton and Company. Lisa McGirr. (2000). Suburban Warriors: The origins of the new American right. Princeton: Princeton University. William Deverell.(2004) Whitewhashed Adobe; The rise of Los Angeles and the remarking of its Mexican past. Los Angeles: University of California Press.