Every taxpayer have to contribute to the state income to the same extent. This, however, raises a question what does to "the same extent" mean? It can be interpreted as giving to the state budget the same percentage of income by every taxpayer - what is called a flat tax nowadays (this view was supported by Adam Smith) or diversifying the tax rate between taxpayers. Within the second approach, taxpayers that have bigger income should pay bigger percentage of that income to the state budget, so the tax progression is applied.
Every taxpayer has to be sure how much taxes he will have to pay. According to Adam Smith, this rule is of great importance. He indicated it as one of the most important features of the tax system. The confidence on how much tax should be paid determines often the overall condition and assessment of the tax system.
Every tax should be collected at the time and in the manner that is most appropriate for the taxpayer. Adam Smith shows that this is very important as well for the taxpayer, because then he can pay taxes on time, and for the tax collector, because then he can collect taxes on time.
Every tax should return to the society in the value similar to the value of the tax collected from the society. The perfect situation would be that the same value that was collected comes back to the society, however this would mean no administration costs, which is impossible. However, the lower the administration costs, the better for the tax system.
Every taxpayer have to contribute to the state income to the same extent. This, however, raises a question what does to "the same extent" mean? It can be interpreted as giving to the state budget the same percentage of income by every taxpayer - what is called a flat tax nowadays (this view was supported by Adam Smith) or diversifying the tax rate between taxpayers. Within the second approach, taxpayers that have bigger income should pay bigger percentage of that income to the state budget, so the tax progression is applied.Every taxpayer has to be sure how much taxes he will have to pay. According to Adam Smith, this rule is of great importance. He indicated it as one of the most important features of the tax system. The confidence on how much tax should be paid determines often the overall condition and assessment of the tax system.Every tax should be collected at the time and in the manner that is most appropriate for the taxpayer. Adam Smith shows that this is very important as well for the taxpayer, because then he can pay taxes on time, and for the tax collector, because then he can collect taxes on time.Every tax should return to the society in the value similar to the value of the tax collected from the society. The perfect situation would be that the same value that was collected comes back to the society, however this would mean no administration costs, which is impossible. However, the lower the administration costs, the better for the tax system.
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