BU357 Lecture Notes - Lecture 2: Royal Assent, Tax Law
Document Summary
History: income war tax imposed in 1917 to finance ww1. Currently income tax= 62% of govt revenue personal tax= 4x the corporate taxes collected. Taxes classified in a number of ways: basis (head, income, wealth tax etc) Incidence (who the burden falls on ex: sales tax at walmart they can charge customers more and move the burden on them: nature ( constant or progressive prog= different for diff levels of income) Often tax system experiences tradeoff between economic growth and simplicity and we always compromise simplicity for more economic return. Tax system defined by 6 traits: who pays tax 2) base to be taxed 3) rates applied to the base 4) general exemptions 5) general deductions 6) other measures such as when/how taxes are to be paid.
