This article throws light upon the three main principles for equitable distribution of tax burden. The principles are: 1. The Cost of Service Principle 2. The Benefit Principle 3. Ability to Pay Theory. 1. The Cost of Service Principle: This principle suggest that the cost incurred by the government in providing public goods to satisfy social wants should be regarded [...]
After reading this article you will learn about:- 1. Meaning and Definitions of Taxable Capacity 2. Types of Taxable Capacity 3. Significance 4. Factors 5. Measurement and Limit. Meaning and Definitions of Taxable Capacity: Taxable capacity is a highly misleading and controversial concept in the theory of taxation. Different writers tried to define this concept differently. The definitions of the [...]
After reading this article you will learn about the shifting process of various taxes. 1. Taxes on Income: The individual income tax apples to earnings originating in all sectors of the economy. Taxes on income are of two types. Firstly taxes on the net income of individuals and secondly taxes on net income of business firms. That is taxed on [...]