Three Criteria For Taxes example essay topic

319 words
When asked the question, "Which of the three types of taxes best fits the taxpayers needs?" , there are several factors to consider. Criteria for taxation and principles of taxation are some of those factors. Three criteria for taxes are equity, simplicity, and efficiency. Two principle of taxation are benefit principle and ability-to-pay principle. All of these factors either serve or disservice the taxpayers and help determine which taxes are most beneficial. As I have mentioned, criteria for taxation are one of the things to consider when determining which taxes best fit the taxpayers needs.

One criteria is equity which is whether the taxes are fair or impartial. Another criteria is simplicity, which states that tax laws should be written so that both the taxpayers and the tax collectors can understand them. The third and last criteria is efficiency, which says that the tax should be easy to administer and reasonably successful as a revenue-generating device. Other determinants whether a tax is beneficial to taxpayers are the principles of taxation. The first is based on the two ideas. One of those ideas is that those who benefit from government services should be the ones who pay for those services.

The other idea is that people should pay taxes in proportion to the amount of services they receive. The other principle of taxation is the ability-to-pay principle which states that people should be taxed solely according to their ability-to-pay. Considering all three criteria of taxation and the two principles of taxation, the most beneficial types of taxes is, in my opinion, the proportional tax. The proportional tax imposes the same percentage rate on everyone, which means that it is fair to everyone no matter if they make $10,000 or $10,000,000. Also unlike the progressive and regressive taxes, the proportional tax is simple and efficient.