Explain and evaluate this statement: “No tax on income can be a just tax unless it leaves individuals in the same relative condition in which it found them.”
What will be an ideal response?
This statement is saying that the only just tax is one which does not change the rank of individuals with respect to their income, i.e., the highest 10% of income earners before taxes will still have the highest 10% after-tax income. Whether or not you believe this is “just” is a matter of opinion. Fairness is a normative, not a positive, concept. Some would say that the only just tax is one that leaves everyone situated in equal positions after taxes. A true Marxist might argue that you tax each “according to his ability and give to each according to his needs.” There are many different views about what is just when it comes to taxes, and the statement simply reflects a view that is probably quite acceptable to many, but not to all.
You might also like to view...
If nominal GDP for an economy is $10,444 billion and the price index is 110, then real GDP is $9495.
Answer the following statement true (T) or false (F)
The efficient market hypothesis states that:
A. markets currently contain an efficient amount of information for them to clear. B. markets currently contain all available information and correctly value instruments. C. when buyers and sellers act in their own best interest markets will be efficient. D. in order for markets to be efficient they need to be adequately regulated.