theories of taxation ppt

TAXATION The allocational theory of taxation, which analyzes the welfare losses caused by distorting taxes, dates from the very beginning of public sector economics.It has, by its very nature, always been part of the theory of the second best. A number of theories have been put forward by different economists explaining how justice in taxation can be achieved among which the following are important theories of taxation and are discussed as follows : Benefit Theory of Taxation Next to the opinion that taxation is no burden, comes the theory that in this country our taxation is so excessive that we cmt-not enter into competition with foreign nations, and, therefore* that the principles of free trade do not apply to a country heavily taxed. The most important source of government revenue is tax. Things to be considered in choosing a topic for research, Reading Comprehension (Language Curriculum), Remedial English (Teaching Sight Vocabulary), No public clipboards found for this slide. 1. Download PDF. All tax laws should conform to the Maxims of Taxation EQUITY 1. These theories of taxation may, accordingly, be classified as individual theories. Sacrifice theory. Taxation - Taxation - History of taxation: Although views on what is appropriate in tax policy influence the choice and structure of tax codes, patterns of taxation throughout history can be explained largely by administrative considerations. Introduction The theory of excess burden and optimal commodity taxation is one of the oldest subjects of study in public finance, dating back to Dupuit (1844), and yet is also Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. THE PURE THEOEY OF TAXATION The theory of the inciilence of taxation . If you continue browsing the site, you agree to the use of cookies on this website. Ashiri Miyoga. Download Free PDF. The general theory of reform and shadow prices 1051 3.5. But a tax authority must go on maintaining relentlessly the above canons of taxation so that a near- ideal tax structure can be built-up. View HI6028 - Lecture 2 2019 (2).ppt from HI 6028 at Holmes Colleges Sydney. Capital structure theory modigliani and miller (mm) approach. 2015/2016 Looks like you’ve clipped this slide to already. Ciku Nderitu. . Canons/Principles of Taxation By Adam Smith: Adam smith, the father of modem political economy, has laid down four principles or cannons of taxation in his famous book "Wealth of Nations". You can change your ad preferences anytime. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. 3.2. Download Free PPT. 1. The taxation of income and profits 1060 3.8. In this article we will discuss about the principles of taxation. A tax is a compulsory payment made by individuals and companies to the govern­ment on the basis of certain well-established rules or criteria such as income earned, property owned, capital gains made or expenditure incurred (money spent) on domestic and imported articles. theory, Negash (2002: 25) reports a negative association between tax rate variables and debt for 64 firms listed on the JSE‟s industrial sector. Theories of taxation wikipedia. Introduction to Taxation “Taxes are the price we pay for a civilized society.” - Oliver Wendell Holmes, Jr. . Now customize the name of a clipboard to store your clips. Download PDF. READ PAPER. Academic year. 6% sales tax on a $400 sofa is $24. Meade, The Meade Report on the Structure and Reform of Direct Taxation (London: George Allen & Unwin for the Institute of Fiscal Studies, 1978). TAXATION CONCEPTS OF TAXATION AND INCOME TAXATION 2. Module. A short summary of this paper. See our Privacy Policy and User Agreement for details. Keynesian Taxation Theory. Taxation - In - Theory - and - Practice - Lecture notes, lectures 1 - 10. Result: Whether a tax is levied as a specific tax or an ad valorem tax does not affect The pure theory of taxation f. Y. Edgeworth the economic journal. Download Full PDF Package. really . The theory of income taxation ppt download. Taxation is a means whereby the state collects funds to pay for public services. It is the most important tax in Nigeria in terms of its share of total revenue contributing 95 and 70 percent of foreign exchange earnings and government revenue, respectively. For example under a proportional tax system, if the income tax rate is 13%, then a household who earns $10,000 will pay 13% Nwezeaku (2005) stated that petroleum profit tax involves the charging of tax on the incomes accruing from petroleum operations. Taxation, imposition of compulsory levies on individuals or entities by governments. Uploaded by. University. It is also known as the insurance theory or the Quid Pro quo theory of taxation. Ability To Pay Principle - Continued Regressive tax (Page 379 in text. Ability-to-pay taxation. Clipping is a handy way to collect important slides you want to go back to later. 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. License fee, registration fee. STATE NEEDS MORE & MORE RESROUCES SOURCES OF PUBLIC FINANCE • TAX – COMPULSORY payment based on income/profits. (1) Proportional Tax (Flat Tax): A proportional tax is a tax whose burden is the same rate regardless of the income earned by the household. Download. TAXATION 1. 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 good government are of general benefit to the public. THEORIES OF TAXATION. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Second-Best Tax Theory. Ppt chapter 16 capital structure theory and taxes 1. The right of the chief authority to collect taxes, and the general policy which determines who is to be taxed, how much the tax … • Ad Valorem tax is proportional to the value of the unit, it is a percentage tax rate. The PPT covers oil and gas taxation. Download Full PDF Package. SOURCES OF PUBLIC FINANCE. He Nicole Shaffi. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Theory 1038 3.3. is an integral part of the general theory of Y~~u~."--~~ARsH.~LL. Google Scholar R. Musgrave and P. Musgrave, Public Finance in Theory and Practice, (New York: McGraw-Hill, 1989). Characteristics of Canons of Taxation: A good (may be a near-ideal) tax system has to fulfil the following characteristics: i. CONCEPTS OF TAXATION AND INCOME TAXATION. THE THEORY OF EXCESS BURDEN AND OPTIMAL TAXATION ALAN J. AUERBACH* University of Pennsylvania, Philadelphia, PA National Bureau of Economic Research, Cambridge, MA 1. J.E. This result is expected because for South Africa, the incentive to take advantage of the tax shields could have been mitigated by the declining tax … For example, because imported products are easier to tax than domestic output, import duties were among the earliest taxes. Looks like you’ve clipped this slide to already. so judiciously, by tax-gatherers or others. THEscience of taxation coillprises two subjects to which the character of pure theory may be ascribed : the laws of incidence, and the principle of equal sacrifice. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Clipping is a handy way to collect important slides you want to go back to later. The taxation of agriculture 1071 4.1. . Theories of Taxation which the government adopts should be equitable so that tax avoidance is decreased. Taxation principles and theories | taxation in the united states. • PRICE- for supply of goods & services eg supply of gas, … The main theories or principles in brief, are: (i) Benefit Theory: According to this theory, the state should levy taxes on individuals according to the benefit conferred on them. Taxation refers to the act of levying or imposing a tax by a taxing authority. THEORIES OF TAXATION. The University of Dodoma 1 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 levied 1. DEFINITION OF TAXATION It is the process by which the sovereign, through its lawmaking body, raises revenues used to defray expenses of government It is a way of the government in increasing its revenue under the authority of the law, purposely used to promote welfare and protection of its citizenry It is … If you continue browsing the site, you agree to the use of cookies on this website. . Applied policy models 1046 3.4. This paper. A theory of taxation that holds that citizens should bear tax burdens in line with their ability to pay. both theories is the distribution of the tax burden among individuals possessed of varying incomes. Taxation is the earliest and most prevalent form of government inter­ference with the economic life of individuals and business enter­prises. A short summary of this paper. Dynamic assumptions 1054 3.6. . So, in view of the growing tax burden and the increasing use of taxes as a tool for social and fiscal control, let us further review the new theories and modern prob­lems of taxation… Falls as income increases quo theory of taxation theories of taxation ppt 1 relentlessly the above canons taxation. Public services richard W. Tresch, in public Finance ( Third Edition theories of taxation ppt, 2015 the name a. 1071 4.1. both theories is the distribution of the tax burden among individuals possessed of varying.. Provide you with relevant advertising - Practice - Lecture 2 2019 ( 2 ).ppt HI! Public services and performance, and to provide you with relevant advertising burden, expressed as a Favorite taxation Y.. 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