|An aspect of fiscal policy|
Purposes and effects
Social security contributions
Payroll or workforce
Wealth (net worth)
Goods and services
Ad valorem and per unit
Proportional, progressive, regressive, and lump-sum
- A progressive tax is a tax imposed so that the effective tax rate increases as the amount to which the rate is applied increases.
- The opposite of a progressive tax is a regressive tax, where the effective tax rate decreases as the amount to which the rate is applied increases. This effect is commonly produced where means testing is used to withdraw tax allowances or state benefits.
- In between is a proportional tax, where the effective tax rate is fixed, while the amount to which the rate is applied increases.
- A lump-sum tax is a tax that is a fixed amount, no matter the change in circumstance of the taxed entity. This in actuality is a regressive tax as those with lower income must use higher percentage of their income than those with higher income and therefore the effect of the tax reduces as a function of income.
Direct and indirect
Fees and effective
- Tolls: a fee charged to travel via a road, bridge, tunnel, canal, waterway or other transportation facilities. Historically tolls have been used to pay for public bridge, road and tunnel projects. They have also been used in privately constructed transport links. The toll is likely to be a fixed charge, possibly graduated for vehicle type, or for distance on long routes.
- User fees, such as those charged for use of parks or other government owned facilities.
- Ruling fees charged by governmental agencies to make determinations in particular situations.
- Inflation tax: the economic disadvantage suffered by holders of cash and cash equivalents in one denomination of currency due to the effects of expansionary monetary policy
- Financial repression: Government policies such as interest rate caps on government debt, financial regulations such as reserve requirements and capital controls, and barriers to entry in markets where the government owns or controls businesses.
- Scutage, which is paid in lieu of military service; strictly speaking, it is a commutation of a non-tax obligation rather than a tax as such but functioning as a tax in practice.
- Tallage, a tax on feudal dependents.
- Tithe, a tax-like payment (one tenth of one's earnings or agricultural produce), paid to the Church (and thus too specific to be a tax in strict technical terms). This should not be confused with the modern practice of the same name which is normally voluntary.
- (Feudal) aids, a type of tax or due that was paid by a vassal to his lord during feudal times.
- Danegeld, a medieval land tax originally raised to pay off raiding Danes and later used to fund military expenditures.
- Carucage, a tax which replaced the danegeld in England.
- Tax farming, the principle of assigning the responsibility for tax revenue collection to private citizens or groups.
- Socage, a feudal tax system based on land rent.
- Burgage, a feudal tax system based on land rent.
- "…the economic incomes of private people are of three main types: rent, profit and wages. Ordinary taxpayers will ultimately pay their taxes from at least one of these revenue sources. The government may intend that a particular tax should fall exclusively on rent, profit, or wages – and that another tax should fall on all three private income sources jointly. However, many taxes will inevitably fall on resources and persons very different from those intended … Good taxes meet four major criteria. They are (1) proportionate to incomes or abilities to pay (2) certain rather than arbitrary (3) payable at times and in ways convenient to the taxpayers and (4) cheap to administer and collect."  
Increased economic welfare
Reduced economic welfare
Cost of compliance
In developing countries
- Trade liberalisation has led to a decline in trade taxes as a share of total revenues and GDP.
- Resource-rich countries tend to collect more revenue as a share of GDP, but this is more volatile. Sub-Saharan African countries that are resource rich have performed better tax collecting than non-resource-rich countries, but revenues are more volatile from year to year. By strengthening revenue management, there are huge opportunities for investment for development and growth.
- Developing countries have an informal sector representing an average of around 40%, perhaps up to 60% in some. Informal sectors feature many small informal traders who may not be efficient in bringing into the tax net, since the cost of collection is high and revenue potential limited (although there are broader governance benefits). There is also an issue of non-compliant companies who are 'hard to tax', evading taxes and should be brought into the tax net.
- In many low-income countries, the majority of revenue is collected from a narrow tax base, sometimes because of a limited range of taxable economic activities. There is therefore dependence on few taxpayers, often multinationals, that can exacerbate the revenue challenge by minimising their tax liability, in some cases abusing a lack of capacity in revenue authorities, sometimes through transfer pricing abuse.[further explanation needed]
- Developing and developed countries face huge challenges in taxing multinationals and international citizens. Estimates of tax revenue losses from evasion and avoidance in developing countries are limited by a lack of data and methodological shortcomings, but some estimates are significant.
- Countries use incentives to attract investment but doing this may be unnecessarily giving up revenue as evidence suggests that investors are influenced more by economic fundamentals like market size, infrastructure, and skills, and only marginally by tax incentives (IFC investor surveys).
- In low-income countries, compliance costs are high, they are lengthy processes, frequent tax payments, bribes and corruption.
- Administrations are often under-resourced, resources aren't effectively targeted on areas of greatest impact, and mid-level management is weak. Coordination between domestic and customs is weak, which is especially important for VAT. Weak administration, governance and corruption tend to be associated with low revenue collections (IMF, 2011).
- Evidence on the effect of aid on tax revenues is inconclusive. Tax revenue is more stable and sustainable than aid. While a disincentive effect of aid on revenue may be expected and was supported by some early studies, recent evidence does not support that conclusion, and in some cases, points towards higher tax revenue following support for revenue mobilisation.
- Of all regions, Africa has the highest total tax rates borne by business at 57.4% of profit on average, but has reduced the most since 2004, from 70%, partly due to introducing VAT and this is likely to have a beneficial effect on attracting investment.
- Fragile states are less able to expand tax revenue as a percentage of GDP and any gains are more difficult to sustain. Tax administration tends to collapse if conflict reduces state controlled territory or reduces productivity. As economies are rebuilt after conflicts, there can be good progress in developing effective tax systems. Liberia expanded from 10.6% of GDP in 2003 to 21.3% in 2011. Mozambique increased from 10.5% of GDP in 1994 to around 17.7% in 2011.
|This section may lend undue weight to certain ideas, incidents, or controversies. (November 2012)|
- Tax calculation
- (0.05*50,000) + (0.10*50,000) + (0.15*75,000) = 18,750
- The "effective rate" would be 10.7%:
- 18,750/175,000 = 0.107
- The "marginal rate" would be 15%.
By country or region
- List of countries by tax rates
- List of countries by tax revenue as percentage of GDP
- Category:Taxation by country
- Charles E. McLure, Jr. "Taxation". Britannica. Retrieved3 March 2015.
- See for example 26 U.S.C. § 7203 in the case of U.S. Federal taxes.
- Simkovic, Michael (2015). "The Knowledge Tax". University of Chicago Law Review. SSRN .
- Simkovic, Michael. "The Knowledge Tax".University of Chicago Law Review. SSRN .
- "Definition of Taxes (Note by the Chairman), 1996" (PDF). Retrieved 22 January 2013.
- "Social Security Programs Throughout the World on the U.S. Social Security website for links to individual country program descriptions". Ssa.gov. Retrieved 22 January 2013.
- By contrast, some countries, such as New Zealand, finance the programs through other taxes.
- See, e.g., India Social Security overview
- See, e.g., United States Federal Unemployment Tax Act.
- Taxes on the net wealth of corporations are often referred to as corporate tax.
- McCluskey, William J.; Franzsen, Riël C. D. (2005). Land Value Taxation: An Applied Analysis. Ashgate Publishing, Ltd. p. 4. ISBN 0-7546-1490-5.
- "TPC Tax Topics | Federal Budget". Taxpolicycenter.org. Retrieved 27 March 2009.
- "26 USC 877". Law.cornell.edu. Retrieved 22 January 2013.
- Although Texas has no individual income tax, the state does impose a franchise tax—soon to be replaced by a margin tax—on business activity that, while not denominated as an income tax, is in substance a kind of income tax.
- "Economist.com". Economist.com. 12 February 2009. Retrieved 27 March 2009.
- Quick, John; Garran, Robert (1 January 1901). The Annotated Constitution of the Australian Commonwealth. Australia: Angus & Robertson. p. 837. Retrieved 12 March 2015.
- "Tax Facts | Tax Facts Listing". Taxpolicycenter.org. Retrieved 27 March 2009.
- "Internal Revenue Service". webcache.googleusercontent.com. Archived from the originalon 16 August 2007. Retrieved 27 March 2009.
- "luxury tax — Britannica Online Encyclopedia". Concise.britannica.com. Retrieved 27 March 2009.
- Schaefer, Jeffrey M. (1 January 1969). "Clothing Exemptions and Sales Tax Regressivity". The American Economic Review. 59(4): 596–599. JSTOR 1813222.
- Atkinson, A. B. (1977). "Optimal Taxation and the Direct Versus Indirect Tax Controversy". Can. J. Econ. 590: 592.
- "What is Difference Between Direct and Indirect Tax?". Investor Guide. Retrieved 28 October 2011.
- "Taxes versus fees". Ncsu.edu. 2 May 2007. Retrieved22 January 2013.
- Some economists[who?] hold that the inflation tax affects the lower and middle classes more than the rich, as they hold a larger fraction of their income in cash, they are much less likely to receive the newly created monies before the market has adjusted with inflated prices, and more often have fixed incomes,wages or pensions. Some argue that inflation is a regressiveconsumption tax. Also see Andrés Erosa and Gustavo Ventura, "On inflation as a regressive consumption tax". Some[who?]claim there are systemic effects of an expansionary monetary policy, which are also definitively taxing, imposing a financial charge on some as a result of the policy. Because the effects of monetary expansion or counterfeiting are never uniform over an entire economy, the policy influences capital transfers in the market, creating economic bubbles where the new monies are first introduced. Economic bubbles increase market instability, and therefore increase investment risk, creating the conditions common to a recession. This particular tax can be understood to be levied on future generations that would have benefited from economic growth, and it has a 100% transfer cost (so long as people are not acting against their interests, increased uncertainty benefits no-one). One example of a strong supporter of this tax was the former Federal Reserve chair Beardsley Ruml.
- See, e.g., Reinhart, Carmen M. and Rogoff, Kenneth S., This Time is Different. Princeton and Oxford: Princeton University Press, 2008 (p. 143), The Liquidation of Government Debt, Reinhart, Carmen M. & Sbrancia, M. Belen, p. 19, Giovannini, Alberto; de Melo, Martha (1993). "Government Revenue from Financial Repression". The American Economic Review. 83 (4): 953–963.
- Taxes in the Ancient World, University of Pennsylvania Almanac, Vol. 48, No. 28, 2 April 2002
- David F. Burg (2004). A World History of Tax Rebellions. pp. vi–viii. ISBN 9780415924986.
- Olmert, Michael (1996). Milton's Teeth and Ovid's Umbrella: Curiouser & Curiouser Adventures in History, p.41. Simon & Schuster, New York. ISBN 0-684-80164-7.
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- The Theocratic Ideology of the Chronicler – by Jonathan E. Dyck – p. 96 – BRILL, 1998
- British Museum. "History of the World in 100 Objects:Rosetta Stone". BBC.
- Hoffman, Phillipe and Kathryn Norberg (1994), Fiscal Crises, Liberty, and Representative Government, 1450–1789, p. 238.
- Hoffman, Phillipe and Kathryn Norberg (1994), Fiscal Crises, Liberty, and Representative Government, 1450–1789, p. 300 .
- "OECD national accounts". Retrieved 1 March 2007.
- Tax/Spending Burden, Forbes magazine, 05-24-04
- "IRS pick list". IRS. Retrieved 21 January 2013.
- "title 26 US Code". US House of Reperesentitives. Retrieved21 January 2013.
- Caron, Paul L. (28 October 2011). "How Many Words Are in the Internal Revenue Code?". Retrieved 21 January 2013.
- "26 CFR – Table Of Contents". Gpo.gov. 1 April 2012. Retrieved 22 January 2013.
- "Internal Revenue Bulletin: 2012-23". Internal Revenue Service. 4 June 2012. Retrieved 7 June 2012.
- Smith, Adam. The Wealth of Nations: A Translation into Modern English. ISR/Google Books, 2015. Book 5, Government Finances: Public Expenditure, Taxation & Borrowing, page 429.ISBN 9780906321706
- Parkin, Michael (2006), Principles of Microeconomics, p. 134.
- William J. McCluskey, Riël C. D. Franzsen (2005). Land Value Taxation: An Applied Analysis. Books.google.com. ISBN 978-0-7546-1490-6. Retrieved 27 March 2009.
- Avi-Yonah, Reuven S.; Slemrod, Joel B. (April 2002). "Why Tax the Rich? Efficiency, Equity, and Progressive Taxation". The Yale Law Journal. 111 (6): 1391–1416. doi:10.2307/797614.JSTOR 797614.
- Johnsson, Richard. "Taxation and Domestic Free Trade". Ideas.repec.org. Retrieved 27 March 2009.
- Corsi, Jerome, 2007. "The VAT: Menace to Free Trade", WorldNetDaily Exclusive Commentary, WorldNetDaily, 3 February 2007
- Johnsson, Richard, 2004. "Taxation and Domestic Free Trade," Ratio Working Papers 40, The Ratio Institute, revised 7 June 2004.
- Hazel Granger (2013). "Economics Topic Guide Taxation and Revenue". EPS PEAKS.
- Africa Economic Outlook 2010, Part 2: Public Resource Mobilisation and Aid in Africa, AfDB/OECD (2010)
- According to IMF data for 2010, from Revenue Data for IMF Member Countries, as of 2011, (unpublished)
- IMF FAD (2011), Revenue Mobilization in Developing Countries
- IMF WP/05/112, Tax Revenue and (or?) Trade Liberalization, Thomas Baunsgaard and Michael Keen
- 'Doing Business 2013', World Bank/IFC (2013)
- Keen; Mansour (2010). "Revenue Mobilisation in Sub-Saharan Africa: Challenges from Globalisation I – Trade Reform". Development Policy Review. 28 (5): 553–571.doi:10.1111/j.1467-7679.2010.00498.x.
- See for example Paul Collier (2010), The Political Economy of Natural Resources, social research Vol 77 : No 4 : Winter 2010.
- Schneider, Buehn, and Montenegro (2010), Shadow Economies all over the World: New Estimates for 162 Countries from 1999 to 2007.
- IMF, 2011, Revenue Mobilization in Developing Countries, Fiscal Affairs Department
- See Section 3 'International Taxation' e.g. Torvik, 2009 in Commission on Capital Flight from Developing Countries, 2009: Tax Havens and Development
- 'Doing Business 2013', World Bank/IFC 2013
- Paying Taxes 2013: Total tax rate is a composite measure including corporate income tax, employment taxes, social contributions, indirect taxes, property taxes and smaller taxes e.g. environmental tax.
- IMF Working Paper 108/12 (2012), Mobilizing Revenue in Sub-Saharan Africa: Empirical Norms and Key Determinants
- African Economic Outlook (2010)
- IMF Revenue Data, 2011: Total Tax Revenue as a percentage of GDP
- Smith, Adam (1776), Wealth of Nations, Penn State Electronic Classics edition, republished 2005, p.704
- Population and Social Integration Section (PSIS), United Nations Social and Economic Commission for Asia and the Pacific
- Gerhart, Eugene C (September 1998). Quote it Completely!. Books.google.com.au. ISBN 978-1-57588-400-4. Retrieved27 March 2009.
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- "Tax History Project: The Depression and Reform: FDR's Search for Tax Revision in N.Y. (Copyright, 2003, Tax Analysts)".
- "Do Conservatives Have a Conservative Tax Agenda?". Heritage.org. Retrieved 22 January 2013.
- Ruiz del Portal, X. 2009. "A general principal–agent setting with non-differentiable mechanisms: Some examples." Mathematical Social Sciences 57, no. 2: 262–278. Academic Search Premier, EBSCOhost.
- Chaturvedi, Skand (2009). Financial Management: Entailing Planning for the Future. Page 77: Global India Publications.ISBN 9789380228563. Retrieved 5 December 2013.
- Van Der Graaf, Rieke, and Johannes J. M. Van Delden. 2009.Clarifying appeals to dignity in medical ethics from an historical perspective. Bioethics 23, no. 3: 151–160. Academic Search Premier, EBSCOhost.
- For an overview of the classical liberal perspective on taxation see www.irefeurope.org
- Human Action Chapter II. Sec. 4. The Principle of Methodological Individualism by Ludwig von Mises
- Spencer Heath MacCallum (12 September 2007). "The Rule of Law Without the State,". Ludwig Von Mises Institute. Retrieved 16 August 2008.
- Williams, Walter E. (6 August 2008). "Government theft, American-style". WorldNetDaily. Retrieved 11 September 2008.
- Li, Jinyan (1991). Taxation in the People's Republic of China. New York: Praeger. ISBN 0-275-93688-0.
- Frey, Bruno S.; Torgler, Benno (2007). "Tax morale and conditional cooperation" (PDF). Journal of Comparative Economics. 35: 136–159. doi:10.1016/j.jce.2006.10.006. Retrieved 3 January 2013.
- "Do Earmarks Increase Giving to Government?" (PDF). Cbees.utdallas.edu. Retrieved 3 January 2013.
- Adam Smith, The Wealth of Nations Book V, Chapter 2, Part 2, Article I: Taxes upon the Rent of Houses
- McCluskey, William J.; Franzsen, Riël C. D. (2005). Land Value Taxation: An Applied Analysis. Ashgate Publishing, Ltd. p. 4. ISBN 0-7546-1490-5.
- http://www.cooperativeindividualism.org/friedman-milton_interview-1978.html[dead link]
- William J. McCluskey; Riël C. D. Franzsen. "Land Value Taxation: An Applied Analysis". google.com.
- George, Henry (1879). Progress and Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth.
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The mid-range for this elasticity is around 0.4, with a revenue peak around 70 per cent.
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- My taxes go where? How countries spend your money (17 February 2015), The BBC
- Minarik, Joseph J. (2008). "Taxation". In David R. Henderson (ed.). Concise Encyclopedia of Economics (2nd ed.). Library of Economics and Liberty. ISBN 978-0865976658. OCLC 237794267.
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