Escolar Documentos
Profissional Documentos
Cultura Documentos
AND PRINCIPLES
TAX: DEFINITION
TAXATION: PURPOSES
TAXES: CLASSIFICATION
Economic efficiency
Administrative simplicity
Flexibility
Fairness
Political responsibility
ECONOMIC EFFICIENCY
Taxes should enhance economic
and social efficiency
Market failures
Externalities (positive and
negative)
Announcement effects
DISTORTIONARY TAX
NONDISTORTIONARY TAX
CORRECTIVE TAX
ADMINISTRATIVE SIMPLICITY
The tax system should have low
costs of administrative
compliance.
It ought to be easy and relatively
inexpensive to administer
Direct cost: cost of running tax
collection agencies
Indirect cost: cost to taxpayers
FLEXIBILITY
FAIRNESS
A good tax system should
distribute the tax burden across
taxpayers in a manner that is
consistent with accepted norms of
fairness and equity.
It ought to be fair in its relative
treatment of different individuals
FAIRNESS
TAX INCIDENCE
FAIRNESS
Fairness in the burden of the tax
according to ones ability to pay.
TAX TYPES
FLAT TAX
PROGRESSIVE TAX :
REGRESSIVE TAXES
FAIRNESS
Fairness in the burden of tax according to
benefits received.
POLITICAL RESPONSIBILITY
References: