Merits of direct taxes, Managerial Economics

Assignment Help:

Merits of direct taxes

a.  They satisfy the principle of equity as they are easily matched to the tax payers capacity to pay once assessed.

b.  They satisfy the principles of certainty and convenience to tax payers as they know the time and manner of payment, and the amount to be paid in the case of these taxes.  Similarly, the government is also certain as to the amount of money it shall receive from these taxes.

c. They satisfy the Canon Simplicity as they are easy to understand.

d. Because most of them are progressive, they tend to reduce income inequalities as the rich are taxed heavily through income tax, wealth tax, expenditure tax, excess profit, gift tax, etc. so long as they are alive; and through inheritance taxes or death duties when they die.  The poor and the income groups which are below the minimum tax limit are exempted form these taxes.  These taxes thus reduce income and wealth inequalities because of their progressive nature.

e. Because the public are paying taxes to the government, they take an interest in the activities of the state as to whether the public expenditure is incurred on public welfare or not.  Such civic consciousness puts a check on the wastage of the public expenditure in a democratic country.


Related Discussions:- Merits of direct taxes

Estimate the firm operating efficiently, Suppose you are an efficient exper...

Suppose you are an efficient expert hired by a manufacturing firm that uses two inputs, labor (L) and capital (K). The firm produces and sells a given output. You have the followin

Exceptional supply curves, Exceptional supply curves In have some situ...

Exceptional supply curves In have some situations the slope of the supply curve may be reversed.   i)   Regressive Supply.   In this case, the higher the price within a ce

Explain the point and arc elasticity of demand, Point and arc elasticity of...

Point and arc elasticity of demand The elasticity of demand is conventionally measured either at a finite point or between any two finite points, on demand curve. The elasticit

Qt, applicatiopn of qt in managerial decision making

applicatiopn of qt in managerial decision making

Determine the managerial economics techniques, Determine the Managerial eco...

Determine the Managerial economics techniques Though the most frequent applications of these techniques are as below:  Risk analysis: Numerous models are used to quantif

Monopoly, features of monopoly?

features of monopoly?

Direct control and moral suasion, Direct control and Moral Suasion Wit...

Direct control and Moral Suasion Without actually using the above weapons, the central bank can attempt simply to use "moral suasion" to persuade the commercial banks to restr

M.E, What is the goal of a firm?

What is the goal of a firm?

Determine the concept of law of demand, Determine the concept of Law of dem...

Determine the concept of Law of demand We have considered numerous factors which fashion the demand for a commodity. As explained the first and most important factor which determ

Help w/ Question, You have opened your own word processing service. You hav...

You have opened your own word processing service. You have already bought a special computer needed for word processing and paid $5,000 for it. However, due to the cost changes in

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd