Law 3101A/B Study Guide - Quiz Guide: Deadweight Loss, Proportional Tax, Inter Vivos
Document Summary
Compulsory, unrequited payments to government used to finance government"s expenditures. Nontax revenues: taxes that are only paid by those benefiting from the specific service or good it finances fee proportionate to the cost for government. Competence to impose and collect taxes granted by constitution. Judiciary settles disputes between tax administration and tax payers. Redistribution: differential taxation: not everybody pays same amount of taxes. Progressive system: higher taxes on high revenues & low or no taxes on low revenues, result income wealth positions more equal. Incidence: who will pay the tax ultimately who will bear the burden of the tax. Economic incidence legal incidence: direct/indirect systems: Direct taxes: legal incidence = legal incidence. Indirect taxes: legal incidence legal incidence the person legally responsible for paying the tax moves the burden to someone else (ex. Regulation: taxation triggers behavioural responses, can regulate specific activities and goods, can influence people"s behaviour to regulate economy & stimulate growth.
