Summary: Principles Of Taxation

Read the summary and the most important questions on Principles of Taxation

• 1 Contemporary reasons for and goals of taxation

• Is taxation a new thing and is it developing

  No taxation have been in existence for ages, however its wort mentioning that tax laws have not been static thus have kept changing with time

• What are the good taxation policies

  • Raise revenue
  • reprice goods and services considered to be incorrectly priced by the market. 
  • Reeddistribute income and wealth
  • raise representation within the democratic process - only when electorate and a government are born by the common interest
  • Reorganiation of the economy through fiscal policy

• 2 Principles of taxation

• Principles of taxation what are they

  Guidelines wich,  accepted and or discussed, should be considered whenever specific laws are proposed discussed and implemented

• 2.1 History

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• Ricarod overruled smith why?

  He stated that there are laws needed wich regulate the dustrubtion of taxation.

• Main objective of this chapter is to state

  That there was in all times a discussion about the correct taxation principles and or the just taxation system

• 2.2 equity

• What is Horizontal equity?

  Makes the tax system arbitrary distinction among tax payers?

• What is vertical equity

  How should people with different income levels be taxed taking into account their relative abilities to pay

• 2.3 Efficiency

• When is a tax is efficient?

  if it distorts market processes as little as possible since iconic agents attempt to limit avoid and evade tax liability as much as possible.

• 2.4 Neutrality

• When is a tax neutral?

  1. When in the absence of tax there is no different changes in supply and demand of the good
  2. So it needs to minimizing discrimination in favor or against any particular economic choice 

• A good tax system should?

  raise revenue and promote or support th growth of investments.