In this article we will discuss about the principles of taxation. The most important source of government revenue is tax. A tax is a compulsory payment made by individuals and companies to the government on the basis of certain well-established rules or criteria such as income earned, property owned, capital gains made or expenditure incurred (money spent) on domestic and [...]
In this article we will discuss the merits and demerits of direct and indirect taxes on an economy. Taxes may be classified as direct and indirect. Direct taxes are levied on a person's or a firm's income or wealth and indirect taxes on spending on goods and services. Thus, direct taxes are paid directly by the person or firm on [...]
In this article we will discuss about the effects of excess burden of indirect taxes, explained with the help of suitable diagrams. While a sales tax is imposed on the sale of a product, an excise duty may be imposed on either on sale or the manufacture of a product. However, as far economic effects are concerned, they are the [...]