Clipping is a handy way to collect important slides you want to go back to later. Keynesian Taxation Theory. Unfortunately, such an ideal tax system is rarely observed in the real world. THEscience of taxation coillprises two subjects to which the character of pure theory may be ascribed : the laws of incidence, and the principle of equal sacrifice. Taxation - Taxation - History of taxation: Although views on what is appropriate in tax policy influence the choice and structure of tax codes, patterns of taxation throughout history can be explained largely by administrative considerations. Result: Whether a tax is levied as a specific tax or an ad valorem tax does not affect really . like blood which acts as a support to every human organ so it could perform every duty inside the body, tax acts as the blood which supports government and state. Sacrifice theory. Nwezeaku (2005) stated that petroleum profit tax involves the charging of tax on the incomes accruing from petroleum operations. E.g. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. CONCEPTS OF TAXATION AND INCOME TAXATION. The allocational theory of taxation, which analyzes the welfare losses caused by distorting taxes, dates from the very beginning of public sector economics.It has, by its very nature, always been part of the theory of the second best. . This result is expected because for South Africa, the incentive to take advantage of the tax shields could have been mitigated by the declining tax … Download. THE PURE THEOEY OF TAXATION The theory of the inciilence of taxation . Taxation is a financial charge imposed on people. See our Privacy Policy and User Agreement for details. TAXATION If you continue browsing the site, you agree to the use of cookies on this website. Taxation principles and theories | taxation in the united states. You can change your ad preferences anytime. Now customize the name of a clipboard to store your clips. If the sofa price is reduced to $200, the tax will be only $12. The PPT covers oil and gas taxation. Ciku Nderitu. TAXATION 1. Download Full PDF Package. If you continue browsing the site, you agree to the use of cookies on this website. (1) Proportional Tax (Flat Tax): A proportional tax is a tax whose burden is the same rate regardless of the income earned by the household. Taxation, imposition of compulsory levies on individuals or entities by governments. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. together, the taxation of wealth transfers under any guise is qualitatively distinct from the taxation of wealth holdings, the latter having been examined in subsection 9.B.2 as a species of capital income taxation.2 1 On the use of such tax base defi nitions as if they were normative principles, see … Academic year. See our User Agreement and Privacy Policy. Download PDF. THE THEORY OF EXCESS BURDEN AND OPTIMAL TAXATION ALAN J. AUERBACH* University of Pennsylvania, Philadelphia, PA National Bureau of Economic Research, Cambridge, MA 1. PPT – Theory Guest Lecture 9 Taxation PowerPoint presentation | free to view - id: f1817-ZDc1Z. THEORIES OF TAXATION. Ability To Pay Principle - Continued Regressive tax (Page 379 in text. If you continue browsing the site, you agree to the use of cookies on this website. Next to the opinion that taxation is no burden, comes the theory that in this country our taxation is so excessive that we cmt-not enter into competition with foreign nations, and, therefore* that the principles of free trade do not apply to a country heavily taxed. A short summary of this paper. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. It is the most important tax in Nigeria in terms of its share of total revenue contributing 95 and 70 percent of foreign exchange earnings and government revenue, respectively. It is also known as the insurance theory or the Quid Pro quo theory of taxation. Nicole Shaffi. Customer Code: Creating a Company Customers Love, Be A Great Product Leader (Amplify, Oct 2019), Trillion Dollar Coach Book (Bill Campbell), No public clipboards found for this slide. This paper. Download full pdf. MAJURA Ibrahim W.,- LL.B. A short summary of this paper. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. Taxation - In - Theory - and - Practice - Lecture notes, lectures 1 - 10. READ PAPER. Meade, The Meade Report on the Structure and Reform of Direct Taxation (London: George Allen & Unwin for the Institute of Fiscal Studies, 1978). Theory 1038 3.3. The tax side and the expenditure side are viewed separately. The initiator of the Keynesian taxation theory was John Keynes, who exposed its main principles in his book “The General Theory of Employment, Interest and Money,” in which he advocated state interventions in the processes of market economy regulation.According to Keynes, fast economic development must be based on a market expansion … ROLE OF TAXATION. HI6028 Taxation Theory, Practice and the Law Lecture 2 Summarising this session By the end of this lecture, you should be A tax is a compulsory payment made by individuals and companies to the government on the basis of certain well-established rules or criteria such as income earned, property owned, capital gains made or expenditure incurred (money spent) on domestic and imported articles. Taxes include income, capital gains, or estate. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. ): A tax whose burden, expressed as a percentage of income, falls as income increases. Some simple guiding principles 1069 4. But a tax authority must go on maintaining relentlessly the above canons of taxation so that a near- ideal tax structure can be built-up. Taxation refers to the act of levying or imposing a tax by a taxing authority. For example, because imported products are easier to tax than domestic output, import duties were among the earliest taxes. Download Free PDF. Capital. SOURCES OF PUBLIC FINANCE. Things to be considered in choosing a topic for research, Reading Comprehension (Language Curriculum), Remedial English (Teaching Sight Vocabulary), No public clipboards found for this slide. Canons/Principles of Taxation By Adam Smith: Adam smith, the father of modem political economy, has laid down four principles or cannons of taxation in his famous book "Wealth of Nations". THEORIES OF TAXATION. . Taxation is the earliest and most prevalent form of government interference with the economic life of individuals and business enterprises. 3.2. A theory of taxation that holds that citizens should bear tax burdens in line with their ability to pay. A tax can either be proportional, progressive or regressive. All tax laws should conform to the Maxims of Taxation EQUITY 1. “ LIFEBLOOD THEORY” THEORY OF TAXATION 6. Actions. both theories is the distribution of the tax burden among individuals possessed of varying incomes. Google Scholar R. Musgrave and P. Musgrave, Public Finance in Theory and Practice, (New York: McGraw-Hill, 1989). The theory of income taxation ppt download. Introduction The theory of excess burden and optimal commodity taxation is one of the oldest subjects of study in public finance, dating back to Dupuit (1844), and yet is also Introduction to Taxation “Taxes are the price we pay for a civilized society.” - Oliver Wendell Holmes, Jr. Download Full PDF Package. Now customize the name of a clipboard to store your clips. Richard W. Tresch, in Public Finance (Third Edition), 2015. The pure theory of taxation f. Y. Edgeworth the economic journal. Characteristics of Canons of Taxation: A good (may be a near-ideal) tax system has to fulfil the following characteristics: i. The Adobe Flash plugin is needed to view this content. Least sacrifice is interpreted in the group sense. Taxation is a means whereby the state collects funds to pay for public services. The most important source of government revenue is tax. so judiciously, by tax-gatherers or others. These theories of taxation may, accordingly, be classified as individual theories. theory, Negash (2002: 25) reports a negative association between tax rate variables and debt for 64 firms listed on the JSE‟s industrial sector. The main theories or principles in brief, are: (i) Benefit Theory: According to this theory, the state should levy taxes on individuals according to the benefit conferred on them. Looks like you’ve clipped this slide to already. 1 0 Theories of taxation-2. The taxation of income and profits 1060 3.8. 6% sales tax on a $400 sofa is $24. License fee, registration fee. STATE NEEDS MORE & MORE RESROUCES SOURCES OF PUBLIC FINANCE • TAX – COMPULSORY payment based on income/profits. Taxation in Theory and Practice. These principles are still considered to be the starting point of sound public finance. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. 37 Full PDFs related to this paper. View HI6028 - Lecture 2 2019 (2).ppt from HI 6028 at Holmes Colleges Sydney. Get the plugin now. Ability-to-pay taxation. This paper. You can change your ad preferences anytime. Applied policy models 1046 3.4. Second-Best Tax Theory. The right of the chief authority to collect taxes, and the general policy which determines who is to be taxed, how much the tax … Download Share Download PDF. Remove this presentation Flag as Inappropriate I Don't Like This I like this Remember as a Favorite. Download Free PPT. THEORIES OF TAXATION. 2015/2016 Ppt chapter 16 capital structure theory and taxes 1. Theories of Taxation which the government adopts should be equitable so that tax avoidance is decreased. Looks like you’ve clipped this slide to already. TAXATION CONCEPTS OF TAXATION AND INCOME TAXATION 2. If you continue browsing the site, you agree to the use of cookies on this website. . University of Sheffield. Clipping is a handy way to collect important slides you want to go back to later. Theories of taxation wikipedia. Dynamic assumptions 1054 3.6. Ability-to-pay taxation.
- Inherent power of the sovereign,
- exercised thru the legislature,
- to impose burdens upon the subject and object within its jurisdiction,
- for the purpose of raising revenues to carry out the legitimate objectives of the government. He • PRICE- for supply of goods & services eg supply of gas, … Indirect taxation 1066 3.9. Modigliani and miller's capital structure theories. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. • Ad Valorem tax is proportional to the value of the unit, it is a percentage tax rate. . 1. Uploaded by. Ashiri Miyoga. DEFINITION OF TAXATION It is the process by which the sovereign, through its lawmaking body, raises revenues used to defray expenses of government It is a way of the government in increasing its revenue under the authority of the law, purposely used to promote welfare and protection of its citizenry It is … Module. A number of theories have been put forward by different economists explaining how justice in taxation can be achieved among which the following are important theories of taxation and are discussed as follows : Benefit Theory of Taxation So, in view of the growing tax burden and the increasing use of taxes as a tool for social and fiscal control, let us further review the new theories and modern problems of taxation… is an integral part of the general theory of Y~~u~."--~~ARsH.~LL. The least-sacrifice theory, on the other hand, is a group theory of taxation. The taxation of agriculture 1071 4.1. The general theory of reform and shadow prices 1051 3.5. 1. The progressive income tax is an expression of this belief, as are current discussions of a guaranteed annual income for all. IN ECONOMY WHY DO WE NEED TAXATION? Capital structure theory modigliani and miller (mm) approach. The University of Dodoma 1 THEORIES OF TAXATION Tax or taxation is a compulsory contribution to the state revenue, levied by the government on personal income and business profits or added to the cost of some goods, services and transactions, at fixed rate mostly proportionate to the amount on which the contribution is levied 1. Learn more about taxation in this article. For example under a proportional tax system, if the income tax rate is 13%, then a household who earns $10,000 will pay 13% • FEE-payment made to the government by a person in exchange of a service. University. Taxes and production 1058 3.7. The economists have put forward many theories or principles of taxation at different times to guide the state as to how justice or equity in taxation can be achieved. J.E. In this article we will discuss about the principles of taxation. See our Privacy Policy and User Agreement for details. See our User Agreement and Privacy Policy. . 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