Tag Archives | Tax

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 […]

Favour and Against Proportional Taxation

After reading this article you will learn about the arguments in favour and against proportional taxation. Arguments in Favour of Proportional Taxation: Proportional taxation has been advocated by the classical econo­mists as a protest against the injustice of the old system of exemp­tions and privileges. Adam Smith, stating that taxation should be adjusted to the […]

Merits and Demerits of Progressive Taxation

After reading this article you will learn about the merits and demerits of progressive taxation. Merits of Progressive Taxation: Progressive taxation has been universally accepted as the best sys­tem of taxation. It is based on the application of principle of diminish­ing marginal utility of income and ability to pay. As income increases, marginal utility of […]

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