According to John Stuart Mill, the four principles of taxation are that the system be efficient, understandable and equitable and those who benefit from publicly-provided services should sponsor and pay for those services through taxes. A good tax system follows the four principles of taxation.Continue Reading
The first principle, efficiency, means that the tax system raises enough revenue to sponsor projects without burdening the economy and the system shall not become a disincentive for performance. According to Wikibooks, the second principle of "understandable" means that the system should not be incomprehensible to someone who does not understand the principles of taxation. The tax system should not have hidden or complicated language that the average citizen cannot understand, and all costs should be upfront and transparent.
Thirdly, the tax system must be equitable, notes Wikibooks. This means that taxation should be determined by a person's ability to pay, and that wealthier people should pay more in taxes because they are able to do so. This specific principle is also known as a flat tax rate. For example, a tax of 10 percent would have far less of an impact on a person who makes a million dollars a year than on someone who makes $10,000. The fourth principle, the benefit principle, simply means that those who benefit from a publicly provided service should pay the taxes that fund the service.Learn more about Taxes
Federal excise taxes are taxes imposed by the federal government on specific goods and services that are often included in the price of the product, according to the Internal Revenue Service. Excise taxes are commonly applied to products such as gas, cigarettes and alcohol.Full Answer >
The tax-related services that the NYC Department of Finance offers include the administration of business income and collection of excise taxes. The department also collects property taxes and fines or charges related to properties, according to the New York City Department of Finance.Full Answer >
The money raised through property taxes funds schools and other public services, such as police departments and sanitation, states the U.S. Department of the Treasury. In most cases, the more money a local government raises through property taxes, the more money a school receives, states SFGate.Full Answer >
There are several online services that allow taxpayers to file their federal income taxes for free; the Internal Revenue Service offers a tax preparation service that is free for almost everyone. This service is called Free File.Full Answer >