Public Finance-Theories of Taxation [IEcoS (Economic Services) Economics Paper-3]: Questions 9 - 12 of 12

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Question number: 9

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

In the case of Corporate Tax, who bears the incidence? Substantiate your answer in the light of Herberger Model. (2012)

Explanation

Corporation tax is considered to be the most controversial issue in tax incidence analysis.

  • According to the traditional view, shifting of corporation tax is not possible but modern economists do not agree with this view.

  • In the opinion of the traditional thinkers on this subject matter, the burden rests with the stockholders through reduced dividend

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Question number: 10

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain the concept of equity in taxation. Analyze how ability to pay theory is useful in achieving it.

Explanation

The concept of equity in taxation refers to the social justice in the allocation of tax burden. Equity is identified with other general criteria such as fairness, justice, or avoidance of hardship, and linked with particular phenomenon such as distribution of income or property. There are two criteria of equity:

  • Horizontal equity implies that all th

… (311 more words) …

Question number: 11

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Write a short note on optimal taxation.

Explanation

Optimal taxation depends upon the trade off between efficiency and fairness. A fair tax is one that guarantees a socially desirable distribution of tax burden; an efficient tax is one with a small excess burden.

  • A fair tax is often the one that imposes equal liabilities on people that have the same ability to pay, whereas an efficient tax system is

… (39 more words) …

Question number: 12

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

What do you mean by optimal taxation?

Explanation

  • Optimal taxation depends upon the trade off between efficiency and fairness.

    • A fair tax is one that guarantees a socially desirable distribution of tax burden; an efficient tax is one with a small excess burden.

    • A fair tax is often the one that imposes equal liabilities on people that have the same ability to pay, whereas an efficient tax system is o

… (129 more words) …

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