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1) Equity- Taxes should be fair, and certain taxes should be given to taxpayers with similar characteristics. Could be on ability to pay. Example: Height tax is unfair.
2) Non-Distortionary- Taxes should not affect economic behavior. For example, they should not be so high that they discourage people from working.
3) Certainty- People and firms should know when a tax should be paid (and how much). Taxes should be stable, so that people and firms can plan their finances.
4) Convenience- It must be simple and easy for people and firms to pay their taxes on a regular basis. For example, income taxes are collected by employers on a monthly basis from the salaries of the workers.
5) Simplicity- Taxes should be simple to understand. If they are too complicated, calculating the tax owed might be difficult.
6) Administrative Efficiency- Taxes should be cheap (and easy) to collect. There is no point in introducing a tax that costs more to collect than it generates in revenue.
Wiki User
∙ 8y ago
Wiki User
∙ 13y agoAttributes/characteristics of a Good Tax System
1. Productive of Revenue
2. Certain to the tax payer
3. Convenient to the Tax payer
4. Impartial between one person and another
5. Adjustable
6. Automatic in stabilizing the economy
7. Unharmful to efforts and initiatives
8. Consistent with government policy
9. Equitable in the distribution of the tax burden.
Wiki User
∙ 15y agocharacteristics of taxation characteristics of taxation
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What is proportional tax system?
The proportional tax system refers to the same percentage of tax regardless of the taxpayer's earnings. Proportional tax is also called as a flat tax.
What is a tax on production or sale of good called?
excise tax
What is a tax on the production or sale of a good called?
excise tax
What is a definition of a regressive tax system?
A tax system that puts a greater burden on low-income people than on high-income people
What type of tax system did Henry George propose?
Liberty is the tax system that Henry George did. He is best known for the single taxes on land.
Which is not a characteristic of a good tax?
Characteristics of a good tax are equality, simplicity, certainty, and efficiency. These are the only characteristics of a good tax.
What are the four characteristics of a good tax?
The four characteristics of a good tax are simplicity, efficiency, certainty, and equity (fairness).
Principles of a good tax system?
The principles of good tax system is that it is efficient, understandable and equitable. The benefit principle is also another principle of a good tax system.
What four characteristics should a good tax have?
simplicity, efficiency, certainty, and equity
Characteristics of a good internal control system?
good environment control
What are the characteristics of a Multi-party political system?
to good occupation
What was englands worth to William the conquer?
In 1066 England was a rich and sophisticated country with a good law system. There was lots of food and a good tax system
Why is the progressive tax is the ideal tax system?
the progressive tax system is the ideal one because it would not be unfair to the people whose income are less because the more you earn, the higher your tax rate.So it means that people who earn less will pay less tax rate while those people who earn more will pay more tax rate. That's the good thing about progressive tax system.
Explain the Characteristics of a good computer system?
characteristics of a computer are as follows:-1.simple2.accurate3.clear4.up-to-date5.relevant6.timely
How does the UK tax system different from the Sierra Leone tax system?
briefly explain the tax system of Sierra Leone
How does the UK tax system different from the Sierra Leone tax system.?
briefly explain the tax system of Sierra Leone
List and define the characteristics of a good tax?
It brings in more money than it costs to administer, and it applies fairly to people in similar circumstances.
