Computerized Pay-As-You-Earn (PAYE) Income Tax Calculator
Income Tax Calculator – The have been an advocate for the use of tax as an instrument of social engineering, to stimulate general or sectorial economic growth. In that regard, taxation could have a positive or negative effect on both the individual and on government. To the individual, low income tax rate constitutes an incentive to work or save, while high income tax rate represents a disincentive to work or save.
To the government, high tax rates provides the most reliable, important and dominant source of government revenue, for promoting the economic development of the nation. The tax rate is often a major consideration in the choice of organizational form of business and may also be associated with varying levels of foreign direct investment.
According to Burgess and Nicholas (1993) Income tax is a tool to achieve economic growth in any country. Income tax is accepted not only as a means of raising the required public revenue, but also as an essential fiscal instrument for managing the economy. Problems of taxation have been receiving special and increasing attention in recent years.
Presently, in Nigeria, because of paucity of resources that can be obtained from oil and from domestic borrowing, Nigeria government needs to increase its tax revenues in order to achieve macroeconomic objectives.
The financing of the social security benefits such as health, security and provision of utilities draws heavily upon income that otherwise would have been saved. Instead of accumulating capital, this income goes to social security transfers which are probably consumed.
These burdens have pressed the government to continue pursuing its tax reform agenda since revenue generating from oil has diminished which turned taxation as the major source of financing the budget.