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- Dec 11, 2011
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In The Wealth of Nations (1776), Adam Smith argued that taxation should follow the four principles of:-
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- fairness-that taxation should be compatible with taxpayers' conditions, including their ability to pay in line with personal and family needs;
- certainty-meaning that taxpayers should be clearly informed about why and how taxes are levied;
- convenience-relates to the ease of compliance for the taxpayers: how simple is the process for collecting or paying taxes?, and
- efficiency-touches on the collection of taxes: basically put, the administration of tax collection should not negatively affect the allocation and use of resources in the economy, and certainly shouldn’t cost more than the taxes themselves..
What are the principles of good taxation?
What are the principles that should underpin taxation and how do these impact on our daily lives? Dr Alberto Asquer examines the issues.
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