Coinsland is a third-world country located in Africa with its currency being Coins Dollar. It is a democratic country which gained its independence from the UK in the 1960s. From its recent 2020 population census, the country has a little above 15 million people with an unemployment rate of 40%. Salaries in the country are very low compared to its neighbouring countries. Its citizens are very sensitive to taxes. It has many political parties. However, since its independence, it has been governed by two major political parties, NCC and NCP. Currently, the NCP is ruling the country with a slim majority in parliament. Like many developing countries Coinsland has borrowed heavily through both parties to finance their budget deficits in the past. The current minister of Finance for Coinsland is Mr. Pepeni Dakura. During his vetting, he promised the country that he would not borrow but use prudence to finance the country's budget deficits. He has presented a proposal to parliament for this current fiscal year to have more taxes levied to avoid borrowing. The minority in parliament NCC is however vowing never to support any tax increment parliament. Their view is that even if taxes are increased, it is going to cripple businesses and yet the government will not be able to have sufficient revenue needed to finance its deficit budget. In support of this view, one of the minority members, Hon. Bienman stated that an increment in taxes has never helped any country to free itself from borrowing. He further stressed that when imposed on citizens, it has both incidence and impact on the taxpayer. Sometimes the incidence of tax is fully or partially borne by the producer while in some instances, this is shifted fully or partially to the consumer which he found to be worrying since it has become a matter of robbing Peter to pay Paul. In debunking the argument of the minority member, Hon. Takaara the majority leader in parliament argued that the country has no option than to impose taxes to meet its target since has exhausted all international borrowing and will therefore not be able to borrow money In the international market at the competitive interest rate. He equally added that it would not be possible to also be able to mobilise enough debt from the local debt market. A few majority of such members in parliament are convinced by the minority argument and hence such members will not vote in favour of the minister if the issue is brought to parliament without fresh, coherent and cogent arguments. The Finance Minister, Mr. Pepeni Dakura has contracted you as a public administration expert to assist him with more convincing arguments to prepare for parliament with his proposal. Assist him with the following issues:

a) What will influence the level at which taxes can be raised in Coinsland? [10 marks]

b) What will determine the bearer of tax incidence in Coinsland? [10 marks]

c) What could account for the inability of Coinsland to be able to mobilise debt from within its citizens? [10 marks]