Taxation

1.What is the principal purpose of taxation?

Major purpose for the government is to earn revenue, provide better facilities and services to the public.

2. What are the principles of taxation?

In general taxes are based chiefly on two principles: the Benefit Principle and the Ability-to-Pay Principle .

3.What do the principles of taxation state?

The Benefit Principle of taxation is based on two ideas. First, those who benefit from government services should be the ones to pay for them. Second, people should pay taxes in proportion to the amount of services or benefits they receive. The Ability-to-pay Principle of taxation says that people should be taxed according to their ability to pay, no matter what benefits or services they receive.

4.How are the most taxes be classified?

There are three types of taxes in the United States: proportional, progressive and regressive.

5.What are the features of proportional, progressive and regressive taxes?

A proportional tax is one that imposes the same percentage rate of taxation on everyone, no matter what their income.

A progressive tax is one that imposes a higher percentage rate of taxation of people with high incomes than on those with low incomes.

A regressive tax is one that imposes a higher percentage rate of taxation on low incomes than on high incomes.

6.What is a sales tax?

A sales tax is a general tax levied on consumer purchases of nearly all products.

7.What is a main source of government revenue?

A major source of revenue is the property tax — a tax on real property and tangible or intangible personal property.

8.Who is a tax assessor?

Tax assessor is the person who places value on property for tax purposes.

9.Who pays taxes?

A taxpayer pays taxes

10.What are the criteria of taxation?

There are 4 criteria of taxation. One such criteria is that a tax yields enough revenue. A second criterion is clarity. Tax laws should be written so that both the taxpayer and tax-collector can understand them. A third criterion is ease of administration. A tax should be easy to collect.. This criterion also includes convenience and efficiency. That is the tax should be administered at the lowest possible cost. A final criterion is fairness. Taxes should be imposed justly.

11.Why must government have criteria and standards when it comes about taxes?

In order to have an effective tax system, government must have criteria or standards when it comes about taxes.

12.What do people think of taxes?

People seem to be more willing to pay taxes when they understand them. People do not always agree about what is or is not fair when it comes to taxes.