Ethical issue when housing price are increased to increase the tax

Tax is the source of income by the government to earn money from its citizens and organizations legally. It has the formula which has elements like rate structure and identifies the taxpayer, and this is what we call tax liability. A tax has the base of taxing, for example, we have taxation on employees’ salaries, income tax, value added tax, excise duty and much more. Rental income is one way where the government gets income by property owners paying a certain percentage of rental income to the government who they pass this tax liability to the people who living in this houses.

An ethical issue may be gotten from any problem or any situation which need someone to select between one or two situations which must be measured as right or wrong. It is either ethical or unethical, ethical issue is the right choice while the wrong choice is referred to us unethical (Tomasic, 1991).

Utilitarianism theory

According to the utilitarian theory, the place of location of whether something is right or wrong is determined by the outcome. The consequences associated with a specific action decided to be taken over another one will tell us whether an action is ethical or unethical. As we consider the interest of one party and disregard the interest of another party the decision may be forced to be unethical one.  We are going to evaluate whether ii it right or wrong to increase the rent in order to increase the tax. There only two approaches to ethics which are either utilitarian based or can be rights based (Hare, 1982).

Relativism theory

Relativism theory is a theory that explains about morality is relative to norms of a certain culture. For example, whether an action taken is right or wrong it will depend on those society norms. The action will be morally right in one area but be wrong in another one. In this case, the increase of a house price may be right in a given geographical area but wrong in another one depending on the economic structure (Positivism, 1996).

Virtue ethics theory

This will help us to determine the amount of a decision process to determine whether it is right in a given case and whether it would have been stated in non-virtuous terms for any citizen to understand the scope of increase the house prices to increase the tax (Thiroux, 1980).

Kantian theory

According to Kant to tell whether a person is good or bad it will depend on the motivation of actions they have but not consequences being good. He also argues that morals are determined if someone is motivated. The emotion of a person will Couse someone to do something. In this case, the government will consider the citizen views and feel in order to determine to impose an increase of a house price or not to in order to increase tax (Teson, 1992).  

Reasons why the housing price should keep increasing in order to increase the tax

 

Taxes and housing values are argued that local authority induces sorting through changes in house values and make this redistribution feasible. By doing this they assume that the houses are similar and the size where land is same and where the land is not the same the house rate will be fixed. The rent and housing prices will be increased so that rich people share the same level of utility and those who are poor should share one low utility level and location should be independent. We are supposed to come up with the approach of equilibrium even if the society is heterogeneous (Donaldson, 1983). Even if the resident is segregated they should live in the similar jurisdiction as same as the poor.

 The housing price should not keep increasing in order to increase the tax.

On the other hand in the most area of the world, taxes are most important as it’s a capture instrument of the government but we are not supposed to increase the house prices because they will rise much higher than the wages, hence the affordability of houses will be reduced. The increase in price will lead to an increase of the amount of money which the citizens spent on loans and mortgage repayment. All citizens with equal income in a given country or community they are supposed to enjoy same housing rates reason being it are not ethical to treat a different individual differently. Those in the different location the rate should be different; every person who is rich or poor should enjoy similar rights even if they don’t pay equal taxes (Donaldson, 1983).

Conclusion and recommendations

The study of changing the taxation should be taken keen because the principle may be misused to play unethical behaviors’ where the prices are abnormally increased. The price of houses should go hand in hand with the increase in the income of the taxpayer. The political and economic equilibrium should be able to reduce the gap between rich and poor where rich people go to high taxes and low returns whereas poor pay low taxes and vote high grants. The most models and theories have the similar approach of increasing income of everyone before affecting the tax policy the only difference is the time of making that decision (au/Australian, 2016)

References

au/Australian. (2016, june 8). Retrieved from -new-home-sales-surged: http://www.businessinsider.com

Donaldson, T. W. (1983). Ethical issues in business. New Jersey, 153-165.

Hare, R. M. (1982). Ethical theory and utilitarianism.

Positivism, B. ( 1996). Relativism. Theory, Method, and Evidence.

Teson, F. R. (1992). The Kantian theory of international law. Columbia Law Review, 53-102.

Thiroux, J. P. (1980). K. W. Ethics: Theory and practice. Glencoe Publishing Company.

Tomasic, R. &. (1991). Casino capitalism?: insider trading in Australia. Australian Institute of Criminology.