tax system of the USA and tax structures
Introduction
The major concepts covered in module 4 were cost-benefit analysis, taxation in the United States, standards and characteristics of tax systems, and capital budgeting and finance. Through the topic, I had a better understanding of the importance of cost-benefit analyses in the public sector. Before the class, I had little knowledge of the taxation system of the United States. The class readings provided vital information on the tax system of the USA and tax structures. Also, the class readings provided relevant information on the desirable characteristics that good tax systems should have to avoid pressuring the public. The contents covered were compatible with my overall learning objectives.
What I Learnt from Module 4
One crucial learning outcome that I managed to take away from the course is the usefulness of conducting cost-benefit analyses in the public sector. From the class readings, I learned that cost-benefit analysis is a strategy that can help to provide a way of organizing information about a program under considerations so that priorities are reasonably established. The government uses cost-benefit analysis in the decision-making process in aspects such as purchasing information technology systems, programs associated with developing infectious disease control, modernizing vehicle fleets, and building new highways and bridges among many more others. In such activities, cost-benefit analysis helps the government to ensure that resources are not used badly and fall within the required budget. The learning outcome was compatible with my learning objective of gaining an understanding of the tools that the government uses to ensure that resources are effectively used in various activities. Coming into the course, I was hoping that I would learn how the government determines how a project is worthy of implementation. I learned that the government uses cost-benefit analyses to estimate whether the gain to the society from a project is greater than the social sacrifice required to produce the cost.
Another essential learning outcome that I managed to gain from the readings of module 4 is the characteristics of a good tax system. Taxes are crucial sources of revenue for governments that are necessary for the provision of services to the public. Good tax systems are those that can allow the government to raise sufficient revenue without placing an undue burden on the people. From the readings, I also learned that a good tax system is one that keeps total tax collection costs low within the constraint of satisfactory equity and economic impact. Tax systems should also have a structure that is transparent for people to be easily familiar with them, be fair, and avoid rigging and other unethical practices (Mikesell, 2016). The learning outcome is compatible with my learning objective of understanding how tax systems work and how they should be structured for them to be considered as effective. Before the class, I had little knowledge of how tax systems work. I wanted to know how tax systems work and how they help governments generate revenue. From the readings, I managed to learn the various sources of taxes for the government, such as property taxes, income taxes, and sale and use taxes.
Conclusion
The readings for this week helped me to know a lot about cost analysis and taxation. The learning outcomes from the course were also compatible with my overall learning objectives. The learning outcomes met my expectations and answered some of the questions that I had regarding cost analysis and taxation. I believe that now I am well knowledgeable on our taxation system, cost-benefit analysis and its role in decision-making processes, and how good taxation systems should be structured. I think that the information that I have gained this week would prove beneficial in my future career.