Explore BrainMass

The principles of taxation

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Answer the following question in your own words without quoting anyone:

In your own words, discuss the taxation principles and relate them to tax
incidence. Define the key terms as you go.

© BrainMass Inc. brainmass.com October 24, 2018, 11:58 pm ad1c9bdddf

Solution Preview

The principles of taxation include the concepts of equity, efficiency, adequacy, and affordability. Equity requires that the government levy taxes on those who benefit from the services provided by them, and only on those with the ability to pay. It often requires a progressive taxation structure. Efficient taxes are those that are put to good use- a system that costs a great deal to administer would not be efficient. Adequate taxation implies that income generated from taxation is sufficient for the government's needs. Affordability requires that the taxes do not impose an undue burden on the public.

Tax incidence describes how the burden of a tax is distributed between buyers and sellers. It depends strongly on the elasticity of the demand curve, which measures how changes ...

Solution Summary

The four principles of taxation and how they relate to tax incidence.

See Also This Related BrainMass Solution

Selecting a method of taxation

Explain the benefit principle for selecting a method of taxation. Is the benefit principle more likely to be followed if a tax structure is regressive, proportional, or progressive? Create and clearly provide an example of an actual tax to illustrate your answer.

View Full Posting Details