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Unformatted text preview: pediency Theory or Financial Theory: This
theory aims at attaining maximum amount of revenue
rather on the proper distribution of the burden of
3. Socio-Political Theory: Adolf Wagner's advocated
that it is not the expediency but final social and
political objectives which should be the deciding
factors. A tax policy should not be designed to serve
the needs of the individual members of the society. It
should be used for the benefit of the society in so far
as it is possible.
22 Theories of Taxation:
Theories He favored the idea of using taxation as an
important means of causing reduction of
income inequalities in :
In order to attain this purpose he stated that all
small incomes should be exempted from
taxation. And the government had the right to
control the ownership or property and the right
to inheritance in the interest of the society as a
4. Benefit Received Theory: According to this
theory, the burden of tax must be imposed in
proportion to the benefit received by a taxproportion
payer from the expenditure incurred by the
government financed from tax receipts.
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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.
- Winter '12
- The Land