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    What Is Taxation?

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    dagne harman
    1. Taxation is a mandatory financial charge imposed by a governmental organization on taxpayers to fund public expenditures. Failure to pay taxes is punishable by law. 2. The two main principles of taxation are the benefit principle and the ability-to-pay principle. 3. The ability-to-pay principle holds that taxation should relate to a taxpayer's income or wealth, with higher incomes taxed at higher rates, in accordance with principles of horizontal and vertical equity.

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    What Is Taxation?

    Uploaded by

    dagne harman
    22 views10 pages
    1. Taxation is a mandatory financial charge imposed by a governmental organization on taxpayers to fund public expenditures. Failure to pay taxes is punishable by law. 2. The two main principles of taxation are the benefit principle and the ability-to-pay principle. 3. The ability-to-pay principle holds that taxation should relate to a taxpayer's income or wealth, with higher incomes taxed at higher rates, in accordance with principles of horizontal and vertical equity.

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    1. Taxation is a mandatory financial charge imposed by a governmental organization on taxpayers to fund public expenditures. Failure to pay taxes is punishable by law. 2. The two main principles of taxation are the benefit principle and the ability-to-pay principle. 3. The ability-to-pay principle holds that taxation should relate to a taxpayer's income or wealth, with higher incomes taxed at higher rates, in accordance with principles of horizontal and vertical equity.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views10 pages

    What Is Taxation?

    Uploaded by

    dagne harman
    1. Taxation is a mandatory financial charge imposed by a governmental organization on taxpayers to fund public expenditures. Failure to pay taxes is punishable by law. 2. The two main principles of taxation are the benefit principle and the ability-to-pay principle. 3. The ability-to-pay principle holds that taxation should relate to a taxpayer's income or wealth, with higher incomes taxed at higher rates, in accordance with principles of horizontal and vertical equity.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    What is

    Taxation?

    1
    “
    Taxation or tax is a mandatory financial
    charge or some other type of levy imposed
    upon a taxpayer by a governmental
    organization in order to fund various
    public expenditures. A failure to pay, along
    with evasion of or resistance to taxation, is
    punishable by law

    2
    Principles of
    Taxation
    ◍ Benefit Principle
    ◍ Ability-to-pay Principle

    4
    Which holds that each
    individuals should be
    taxed in proportion to the
    Benefit benefit they receive from
    government programs. A
    Principle person’s taxes should be
    related to his or her use of
    collective goods like
    public roads or parks

    5
    The amount of taxes people
    Ability-to-pay pay should relate to their
    income or wealth. The higher
    Principle the wealth or income, the
    higher the taxes.usually tax
    ◍ Horizontal Equity systems organized along the
    ◍ Vertical Equity ability-to-pay principle are
    also redistributive, meaning
    that they raise funds from
    higher-income people to
    increase the incomes and
    consumption of poorer groups

    6
    Horizontal Equity

    Horizontal equity is based on the idea


    that those who have the same amount of
    wealth, or similar levels of income,
    should be taxed at the same rate as others
    within that same income bracket.

    7
    Vertical Equity

    Vertical equity is based on the idea that


    those who earn more money, or have more
    economic resources, should be taxed at
    higher rates than those earning less
    money. The idea is that those who have the
    means to pay more taxes should contribute
    at higher rates than those who do not.

    8
    “

    9
    👍
    Thanks!

    10

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