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 [...]
Dalton discusses the economic effect of taxation under the following three heads: 1. Effect of Taxation on Production, 2. Effect of Taxation on Distribution 3. Other Effects. 1. Effect of Taxation on Production: According to Dalton effect of taxation on production can be in the following three ways: (a) Effect on ability to work, save and invest. (b) Effect upon [...]
After reading this article you will learn about the characteristics and views about the sound tax system. Characteristics of a Good Tax System: Any system of taxation must be looked at as a whole. That is part of the economic system. Different taxes possess different effects upon the various economic activities. Moreover, these taxes through their effects correct and balance [...]