Abstract
The concept of indexation emerged relatively recently as a mechanism for tax assessment and the determination of wages and salaries, and it has since been adopted by numerous countries worldwide. To achieve equity in income distribution and enhance the standard of living for low-income earners, it is imperative for the state to implement indexation for employees' wages and salaries, alongside its application in tax imposition and the determination of tax allowances based on prevailing inflation levels. The primary objective of adopting indexation is not merely to increase tax exemptions for taxpayers, but rather to ensure social and economic justice for low-income individuals; indexation functions by preventing tax liabilities from rising at a rate higher than the general increase in price levels. This does not imply a reduction in overall taxes, but rather aims to alleviate the fiscal burden on those with limited incomes while simultaneously diversifying tax revenues to include non-essential goods, such as luxury items or products detrimental to public health and the environment.
DOI
10.33095/jeas.v14i51.1412
Subject Area
Economics
First Page
194
Last Page
207
Rights
http://creativecommons.org/licenses/by-nc-nd/4.0
Recommended Citation
Ghaylan, M. S., & Al-Maamouri, A. O. (2008). Standardization: An Approach for Determining Income Level in Iraq. Journal of Economics and Administrative Sciences, 14(51), 194-207. https://doi.org/10.33095/jeas.v14i51.1412
