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Taxes And Its Objectives Beginning of Paper The main objective of tax policy is to encourage permanent economic growth. Many countries suffer from a combination of budget deficit crisis and domestic financial instability. Fiscal policy plays a key role in reducing in the size of the budget deficit. However, the way the defici .... Middle of Paper .... tax system that does not impede growth. While most taxes are distorting and entail some loss of welfare, a growth-promoting tax system is one that exercises the least distorting effects on work effort and the quantity and allocation of investment and saving, minimizes reliance on scarce administrative resources and demands on taxpayers' compliance. The Armey-Shelby flat tax is a proposal that would replace the corporation and personal income. The Armey-Shelby flat tax proposal follows each of the principles of a flat tax. A flat tax eliminat .... 1700 words | 7 pages Subscription Length Price Join 30 days membership (recurring) $19.95 90 days membership (recurring) $39.95 180 days membership (non-recurring) $69.95