A. Wagner, N. I. Turgenev - Taxes and taxation

A. Wagner

In contrast to A. Smith, who considered taxes as a source of covering the state's unproductive expenditures, the German economist A. Wagner proceeded from the theory of collective needs. In accordance with this theory at the end of the XIX century. he combined into four groups of principles nine basic rules of taxation:

1) Financial:

■ sufficiency of taxation;

■ elasticity, i.e. mobility, taxation;

2) Economic and Economic:

■ proper choice of source of taxation (income or capital);

■ the rationality of constructing a system of taxes that is considered to be the consequences and conditions of their proposal;

3) ethical principles, or principles of justice:

■ the universality of taxation;

■ uniformity of taxation;

4) principles of tax administration:

■ certainty of taxation;

■ convenience of paying taxes;

■ Maximize the cost of charging.

However, A. Wagner, in contrast to A. Smith, proceeded, first of all, from the interests of the state. He considered it necessary to build such a taxation system that would be able to ensure an increase in tax collection while increasing the need for public expenditure.

However, it is still impossible to represent A. Wagner as a defender of exclusively state interests. Indeed, based on the basic principles of taxation formulated by him, he put the interests of the state. But it can not be otherwise. Taxes are introduced to ensure the state's financial needs. At the same time, A. Wagner did not exclude from the principles he proposed any provisions established by A. Smith. He was not an advocate of excessive taxation. He was well aware that the tax burden has certain reasonable limits, exceeding which is fraught with a shortage of tax charges in the future. This is eloquently stated by the principle of reasonableness of building a system of taxes established by him, which is considered with the consequences and conditions of their proposal.

H. I. Turgenev

Reinforcement and a certain development of the principles of taxation A. Smith received in the work of the United States scientist NI Turgenev "The experience of the theory of taxes" (1818). Concerning the rule of fairness, he noted that each tax has its inconvenience and therefore, when taxes are introduced, those that are less inconvenient should be selected. At the same time NI Turgenev pointed to the need to establish moderate taxes. In his work he particularly emphasized the necessity of observing the principle of equal distribution of taxes among all citizens according to their incomes. Among the most important principles of NI Turgenev also included the certainty of the tax, the reduction of costs, the convenience of levying taxes. An important development of the theory of taxation was the position of NI Turgenev on the expediency of levying a tax not on capital itself but on income, with a net income so as not to deplete the sources of state revenues.

Thus, in the theory of taxation was laid the basis of a system of principles of taxation, combining the interests of both the state and taxpayers.

Practical application of the aforementioned principles of taxation was received only at the beginning of the 20th century, when after the First World War, many reforms in the economy of many countries matured and tax reforms began.

Meanwhile, the tax theory is not limited to these classical principles and rules. As the tax systems developed and improved, financial science developed, in which the old ones were clarified and new principles of taxation were singled out.

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