After reading this article you will learn about the merits and demerits of progressive taxation. Merits of Progressive Taxation: Progressive taxation has been universally accepted as the best system of taxation. It is based on the application of principle of diminishing marginal utility of income and ability to pay. As income increases, marginal utility of income diminishes. Also, the higher [...]
This article throws light upon the twelve main factors determining the incidence and shifting of tax. The factors are: 1. Elasticity of Demand 2. Elasticity of Supply 3. Price acts an Engine of Shifting 4. Tax Area 5. Time Period 6. Coverage of Tax 7. Availability of Substitutes 8. Nature of Demand for Commodities 9. Business Conditions 10. Types of [...]
After reading this article you will learn about:- 1. Definition and Characteristics of Tax 2. Objectives of Taxation 3. Principles. Definition of Tax: In every country major part of the revenue is raised through taxation. According to Prof. Taylor "Taxes are compulsory payments to governments without expectations of direct return or benefit to the tax payer". Prof. Bastable "defined a [...]