Recognizing and understanding the tax benefits (Final)

Recall from last week’s article, that the benefits received by taxpayers are not all the same and are usually determined by the policy goals of the government which are determined by the level of development of the country, the economic and social condition of the people and the quality of its institutions.  Some benefits are described as being common to all persons while some are considered to be special to all.  Other benefits are thought of as being special to some people.     It was also established that an estimated 17 percent of government spending is on policies that are common to all, and an estimated 83 percent is directed at policies that are special to all and special to some individuals.  This week’s article continues this discussion, but aims to focus on benefits that are considered special to all and special to some during the period 2010 to 2017.

Benefits special to all

It should be clear from the preceding discourse that the hog of government’s money intended to deliver benefits to Guyanese goes to special purposes or special needs.  These special expenditures are part of the distributive and redistributive policies of government.  The distributive policy focuses on expenditures on issues that are special to all, dealing with matters aimed at facilitating individuals to act in a certain manner or to move in a particular direction.  For instance, if government desires to increase investments in the agricultural sector, it will ensure that the infrastructure was in place that made it possible for interested persons to undertake the investment.