As seen above, equity in taxation was the first canon of taxation on which adam smith laid a good deal of stress a fair tax system is not merely an issue in pure economic analysis but also in social philosophy there are two prominent theories put forward to devise a fair or equitable tax system they are (1) benefits. Theories of taxation tax or taxation is a compulsory contribution to the state revenue, levied by the government on personal income and business profits or added to the cost of some goods, services and transactions, at fixed rate mostly proportionate to the amount on which the contribution is levied1 taxation scheme. 4 the most well-known bene®t principle of taxation is due to lindahl see musgrave chapters 4 and 5 for a synopsis of classical and neo-classical taxation theory for more recent research on the bene®t principle see burgat and jeanrenaud (1996), maital (1975), and aaron and mcguire (1970) 5 mill, p 807 118. Ibn khaldun's theory of taxation has been considered one of his most important contributions to economic thought in the muqaddimah, he relates the theory of taxation with the government expenditure and argued for low tax rate so that incentive to work is not killed and taxes are paid happily according to him, at the. Abstract the wide gap between tax theory and tax practice may be traced back, among other things, to the focus in tax theory on the level and optimal structure of tax rates, assuming that tax bases are consistently defined, precisely measurable and readily and uniformly assessable this approach overlooks the variances. Article information comments (0) abstract the tax reform act of 1986 is the most significant piece of tax legislation enacted since the income tax was converted to a mass tax during world war ii after decades of erosion, the individual and corporate income tax bases were broadened and the revenues were used to. Ability to pay, the dominant theory of taxation, is usually interpreted in terms of sacrifice it is held to justify progressive taxation under any one of three possible inter- pretations of sacrifice: the equal, equal-proportional, and least-sacrifice theories these theories rest in turn on three assumptions: the declining marginal utility.
Governments impose taxes to pay for their operations and state services but how do governments decide how to use a system of taxation to charge taxpayers for those services one of the most common theories of how people should pay taxes is the ability-to-pay theory of taxation. Louis kaplow the theory of taxation and public economics a princeton university press princeton and oxford 01_kaplow_prelims_p00i-pxxiiindd iii 2/8 /2008 3:29:57 pm. This article critically evaluates ricardo's contributions to the theory of taxation it begins with an analysis of taxes on income flows, where the main focus is on the incidence of taxation on profits we examine two circumstances of taxation on profits, when gold (the money commodity) is produced inside a country, and when it. Several theories of taxation exist in public economics governments at all levels ( national, regional and local) need to raise revenue from a variety of sources to finance public-sector expenditures adam smith in the wealth of nations (1776) wrote: such things as defending the country and maintaining the institutions of.
Conduit theory describes the tax basis for companies that pass capital gains, interest and dividends on to its shareholders, known as investment conduits. Theories of taxation: the economists have put forward many theories or principles of taxation at different times to guide the state as to how justice or equity in taxation can be achieved the main theories or principles in brief, are:. Oxford universitypressanz 4 taxation principles and theory 4 5 foundations of taxation law ¶11 primary meaning of “taxation” is raising money for the purposes of government by means of contributions from individual persons' taxes come in a variety of forms and are also known by different names.
Abstract: the paper discusses the implications of optimal tax theory for the debates on uni- form commodity taxation and neutral capital income taxation while strong administrative and political economy arguments in favor of uniform and neutral taxation remain, recent advances in optimal tax theory. The general theory of tax avoidance joseph e stiglitz nber working paper no 1868 (also reprint no r0987) issued in march 1986 nber program(s): public economics this paper outlines a general set of principles for tax avoidance most of at least the common tax avoidance schemes can be reinterpreted as. The theory of taxation and public economics presents a unified conceptual framework for analyzing taxation--the first to be systematically developed in several decades an original treatment of the subject rather than a textbook synthesis, the book contains new analysis that generates novel results,.
The pure theory of taxation f y edgeworth the economic journal, vol 7, no 25 (mar, 1897), pp 46-70 stable url: %28189703%297%3a25%3c46%3atptot%3e20co%3b2-i the economic journal is currently published by royal economic society. Dr w m curtiss critically examines various theories of taxation and comments on current practices.
Myles, g (2009), “economic growth and the role of taxation-theory”, oecd economics department working papers, no 713, oecd publishing, paris http:// dxdoiorg/101787/222800633678 oecd economics department working papers no 713 economic growth and the role of taxation-theory. Taxation is the earliest and most prevalent form of government interference with the economic life of individuals and business enterprises the right of the chief authority to collect taxes, and the general policy which determines who is to be taxed, how much the tax shall be, and for what purposes it shall be. Of urban economics) wilson (1986): a theory of interregional tax competition (j of urban economics) other sources: wilson (1999): theories of tax competition (national tax journal) zodrow (2003): tax competition and tax coordination in the european union (international tax and public finance.