Unformatted text preview: Burden of Taxation :
Burden The payment of taxation is painful but essential
process, which affects directly and indirectly the well
being of the every individual and business
Economists speak of money and real burden and also
direct and indirect burden of taxation.
The total amount of money burden of taxation refers to
the amount of money income transferred from the
people to public authorities by the way of taxes. On
the other hand, the total direct burden of taxation
refers to the amount of sacrifice imposed on the
community because of the transfer of money income
due to the tax.
Apart from the direct money and real burden, indirect
effects of particular taxes or of tax system as a whole
are to be seen in the price structure, income and the
volume of employment and production. 24
volume Burden of Taxation :
Burden Over the century, economists have developed two
approaches to taxation viz.
taxation according to benefit received and taxation
according to ability to pay.
The benefit approa...
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- Winter '12
- The Land, canon, public revenue