Ad
related to: what is the theory of taxation
Search results
Results From The WOW.Com Content Network
Influential theories have been the ability theory presented by Arthur Cecil Pigou [2] and the benefit theory developed by Erik Lindahl. [ 3 ] [ 4 ] There is a later version of the benefit theory known as the "voluntary exchange" theory .
Optimal tax theory or the theory of optimal taxation is the study of designing and implementing a tax that maximises a social welfare function subject to economic constraints. [1] The social welfare function used is typically a function of individuals' utilities , most commonly some form of utilitarian function, so the tax system is chosen to ...
Voluntary taxation is a theory that states that taxation should be a voluntary act. Under the theory, people should have the option to pay taxes instead of being forced to pay taxes by their government. Under this theory, the people would control how much they pay and where they spend it.
The benefit principle is a concept in the theory of taxation from public finance. It bases taxes to pay for public-goods expenditures on a politically-revealed willingness to pay for benefits received. The principle is sometimes likened to the function of prices in allocating private goods. [1]
The modern literature on optimal labour income taxation largely follows from James Mirrlees' "Exploration in the Theory of Optimum Income Taxation". [1] The approach is based on asymmetric information, as the government is assumed to be unable to observe the number of hours people work or how productive they are, but can observe individuals' incomes.
A Lindahl tax is a form of taxation conceived by Erik Lindahl in which individuals pay for public goods according to their marginal benefits. In other words, they pay according to the amount of satisfaction or utility they derive from the consumption of an additional unit of the public good.
Such a “theory of taxation may have served fairly well under conceptions of government activity held in the early part of the century,” he continued, but “it must be regarded at present as ...
On the Principles of Political Economy and Taxation (19 April 1817) is a book by David Ricardo on economics. [1] The book concludes that land rent grows as population increases. It also presents the theory of comparative advantage , the theory that free trade between two or more countries can be mutually beneficial, even when one country has an ...