Lecture-9-Public+Revenue+ppp

Lecture-9-Public Revenue ppp

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Unformatted text preview: xactly constitutes equity in taxation? How is the equity to be achieved in practice? Is it through system of ability to pay or through the system of benefit service? In this context, two approaches to taxation are developed. approaches Taxation according to Benefit Received, 6 Taxation Taxation 2 according to Ability to Pay. according Benefit Principle: Benefit The government services confer certain benefits to the community, thus the cost of providing these benefits should apportioned among the individuals and private : organizations on the basis of relative benefit they enjoy. The benefit approach has two implications. enjoy. benefit is used as justification of taxes. benefit is used as standard for apportioning tax benefit burden. burden. This principle assumes that there is basically an This exchange or contract relationship between taxpayers and the government. This principle has interpreted in two ways. two the cost of service principle the value of service principle 27 Benefit Principle: Benefit According to the cost of service principle every According person should contribute in taxes, the actual cost of the services of which he/she is beneficiary. : On the other hand, the...
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This note was uploaded on 02/11/2014 for the course MANA 2028 taught by Professor Sisterennis during the Winter '12 term at Marquette.

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