You are to design a taxation system for the UAE.

a. Explain the different tax rate structures the government can possibly use.

b. How should the burden of government finance be distributed according to the benefit principle or ability to pay principle? Why?

c. How can the government think about reduction in tax evasion?

d. What is the impact of financing capital project using taxation as opposed to borrowing on current and future consumption and saving?

e. Explain briefly user charges and how they impact efficiency.

f. What are the advantages and disadvantages of increasing the money supply to pay for government-supplied goods and services?