The Meaning of Impact, Incidence and Shifting: When a tax is levied, its first impact will be felt by the person, who actually makes the tax payment. He may be an income-receiver, property owner or a buyer or seller of goods arid services. He may bear the tax himself. In some instances, he may be able to shift the burden [...]
After reading this article you will learn about the principle of equity in distribution of tax burden. There has been little interest among philosophers and statesman in the theories of taxation, until the commencement of the eighteenth century. With the advent of the eighteenth century, for several hundred years, in the field of public finance systematic efforts has been made [...]
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. However, in deciding on alternative [...]