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.Know More
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 in Taxes
Personal property taxes are a locally assessed tax, and payment dates are determined by the local assessor's office, according to Prager Metis. The tax is assessed annually, and local citizens receive a tax bill from the city or county assessor providing payment information.Full Answer >
The income tax filing requirement for a U.S. citizen or resident depends on the taxpayer's gross income, filing status and age. For 2014, a single nondependent taxpayer under 65 must file if his gross income exceeds $10,150. Married taxpayers under 65 file with income over $20,300, according to the I.R.S.Full Answer >
In the United States, taxes are imposed on the earnings of individuals and corporations at the state and federal level. The amount of tax owed each year is applied on a progressive scale based on the amount of income earned during the previous taxable year.Full Answer >
Everyone pays taxes in different forms and quantities. Those who work for wages pay income taxes proportional to their income, also called federal payroll taxes. People who buy and consume gasoline pay federal and state gas taxes, while homeowners and renters pay property taxes.Full Answer >