Tag Archives | Public Revenue

Concept of Optimal Taxation: 3 Criterions

This article throws light upon the three main criterions for defining the concept of optimal taxation. The criterions are: 1. Minimization of Resource Cost 2. Equity Criteria 3. Efficiency Criteria. Criteria # 1. Minimization of Resource Cost: A tax system usually involves cost of collection to the authorities and a resource cost to the taxpayers. […]

Equitable Distribution of Tax Burden: 3 Principles

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 […]

Taxable Capacity of a Nation: Meaning, Significance and Limits

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 […]

Shifting Process of Various Taxes

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 […]

Incidence of Tax in the Real Life (With Diagram)

After reading this article you will learn about the incidence of tax in the real life. The main principles of the theory of incidence are condensed by Dalton to form a general preposition of the theory of incidence of taxation. In the real market situations, most commodities have de­mand and supply curves which are less […]

Tax: Characteristics, Objectives and Canons

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 […]

Classification of Taxes: 4 Types

This article throws light upon the four main types of taxes charged on taxpayers. the types are: 1. Direct and Indirect Taxes 2. Proportional, Progressive, Regressive and Degressive Taxes 3. Specific and Ad-Valorum Duties 4. Value Added Tax (VAT). Type # 1. Direct and Indirect Taxes: On the basis of assessment, rather than on the […]

Public Revenue: Meaning and Classification

After reading this article you will learn about the meaning and classification of public revenue. Meaning of Public Revenue: According to Dalton income of a public authority may be defined either in a broad or in a narrow sense. In the broad sense it includes all ‘incomings’ or ‘receipts’. In the narrow sense it includes […]

Top 4 Theories of Tax Shifting

This article throws light upon the top four theories of tax shifting. The theories are: 1. Concentration Theory 2. The Diffusion Theory 3. Demand and Supply Theory of Incidence 4. Musgrave’s Approach. Tax Shifting # 1. Concentration Theory: This theory was advocated by the physiocratic school of thought in France during the middle of the […]

3 Major Economic Effects of Taxation | Public Revenue

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 […]

shopify traffic stats