Fundamental principles of taxation
After studying the second chapter, the student will: know
- theoretical views of the classics of economic thought;
- the basic principles of taxation, developed by A. Smith and developed by A. Wagner;
- the principles of taxation, which are the basis for existing modern tax systems;
be able to
- to distinguish between economic, organizational and legal principles of taxation;
- scientific approaches to the theoretical justification of the principles of taxation;
- the theoretical basis for using the principles of taxation in the formation of modern market systems by states with market economies.
The need to develop certain rules of taxation appeared with the emergence of taxes, and in fact from this point on this problem began to attract the attention of theorists of financial science. And this is not accidental, since it is impossible to build an optimal, fair and efficient taxation system without observing common, common for all fundamental requirements, formed on the basis of the theory's provisions. Despite the impact of various economic, political and social conditions in the formation of tax systems of different countries, they are built in compliance with such rules and regulations. Naturally, the national tax systems differ from each other: by types and structure of taxes, tax rates, ways of levying, fiscal powers of authorities of different levels, in terms of the level, scope and amount of privileges granted and a number of other important features. At the same time, these systems unite the totality of the fundamental principles of taxation.
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Evolution of views on the theory of principles of taxation
The basis of the modern world tax system is based on the principles of taxation, developed by the founder of classical political economy, Scottish economist A. Smith. The worldview of this theorist of financial science was built on the individualistic theories of the state and taxes, according to which the state had to encumber the taxpayer as little as possible. As for the interests of the state, according to his theory, taxes were to satisfy the minimum requirements of the treasury. In his work "Study of the nature and causes of the wealth of peoples", published in 1776, A. Smith first formulated four basic rules of taxation. The essence of them is as follows.
The Rule of Uniformity states that the subjects of any state are obliged to participate in the support of the government whenever possible in accordance with their means, i.e. according to the income that each receives under the auspices of the government. This rule is often also called the principle of justice in economic theory, since it calls for the universality of taxation and the uniformity of its distribution among all citizens.
The essence of the rule of certainty, or of fame, is that the tax that should be paid to everyone must be determined accurately, and not arbitrarily. The time of its payment, the method and amount of the tax must be clear and known to the payer himself, and to everyone else.
The convenience rule means that each tax must be levied at such a time and in such a way that it is convenient for the payer.
This rule means the need to eliminate formalities and simplify the act of paying taxes.
Proceeding from the rule of economy , each tax should be designed so that it extracts from the pocket of the population as little as possible to what goes into the treasury of the state. This principle of taxation confirms the need to streamline the tax administration system and reduce the cost of its implementation. It should be noted that the 18th cent. otkupnaya system led to the fact that the treasury of the state often received less than half of the taxes collected from the population.
For the sake of justice, it should be noted that some scientists even before A. Smith formulated certain provisions relating to the principles of taxation. For example, the idea of the need for uniformity of taxation, a certain convenience for the taxpayer and possibly the smaller tax burden before Adam Smith was expressed by VR Mirabeau (1761), F. Justie (1766), P. Werry (1771) . In particular, the French economist VR Mirabeau believed that taxation should be based directly on the source of income, be with it in a constant ratio and not be burdened with the cost of levying.
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However, it was A. Smith who managed not only to clearly and clearly formulate, but also to scientifically justify these provisions, than laid the foundation for the theoretical development of the fundamental principles of taxation.
As is evident from these principles, they were built by A. Smith on the basis of the interests of one side of tax relations - the taxpayer. Therefore, the principles formulated by him were called "i" the payer's rights declaration ".
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