The implementation of taxation upon the population benefits many cities because it provides them with an additional source of income that can be used for development. Taking into account the fact that state and local revenue systems “depend on a greater variety of revenue sources (such as property taxes, income taxes, sales taxes, user charges, lotteries, and federal grants),” the use of taxation seems to be justified (Shafritz, Russell, & Borick, 2013, p. 489). Even though some cities do not have all of the mentioned revenue sources, they are to pay taxes to other entities. In the case of Lawsona, the same type of taxation is discussed. In order to identify whether it will benefit the city or not, it is significant to consider both the positive and negative influences of this change.
The implementation of taxes reveals that the leaders of Lawsona want to stimulate its growth and to turn it into a well-developed place that appeals to its residents. However, it is significant to realize what kind of sales tax is needed to reach expected goals to ensure that the community is properly funded. The population of the city may resist the implementation of this change because they do not understand the concept of taxation. Acknowledging that taxes will be used, many people start revealing their dissatisfaction because they believe that the leaders of the city want to make them pay more and do not care about their financial problems. Nevertheless, sales tax is used to build roads and support public schools, healthcare facilities, and fire departments, etc.
Due to the implementation of sales tax in Lawsona, the city will be developed, and its neighborhoods will become safer. People are likely to have more opportunities to become officially employed. The salary of teachers is likely to increase, and schools can purchase new books. The emergency management employees are expected to be supported by the funds obtained due to this taxation as well, which can affect their ability to benefit the community positively.
Even though the advantages of sales tax are undeniable, it can have adverse influences on the citizens who have low and middle income. These individuals are limited in their funds, and the necessity to pay more is likely to worsen their condition. In particular, the community can be hurt by the flat tax because it presupposes the necessity for all people to pay the same amount of money regardless of their financial state (Moreno, 2018). Unfortunately, many cities prefer using it because of the simplicity associated with its implementation. Moreover, it seems to be the fairest, as people are not discriminated against considering the amount of money that should be paid. However, this fact can be argued when focusing on the presence of both poor and wealthy residents for whom one and the same amount of money can have a different value. In addition to that, the mall may face a reduction in the number of its customers because of the low- and middle-income families will find another place for shopping. It is even possible that they will prefer making purchases in other cities, which means that the economy of Lawsona will be affected.
Thus, it can be concluded that the implementation of sales tax will have both positive and negative influences on the city. Nevertheless, it is better to focus on the advantages of this change because it can help Lawsona overcome a budget shortfall and provide more benefits for the citizens. The effects on low- and middle-income shoppers should be monitored so that additional interventions can be developed if needed.
References
Moreno, T. (2018). What is a flat tax income system?Web.
Shafritz, J. M., Russell, E. W., & Borick, C. P. (2013). Introducing public administration (8th ed.). Upper Saddle River, NJ: Pearson.