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Theories of Taxation Notes

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Summary

This document describes a summary of the various theories of taxation.

In 1976, Adam smith wrote in the wealth of nations that in as much the population contribute
to the tax cost, it is considerably right to demand some things from the tax system: e.g.
relationship between the tax paid and the ability of the taxpayer to pay.
There are four important conditions met by good taxes:
i. Ability to pay
ii. Cheap to administer and collect
iii. Certain rather than arbitrary
iv. Payable at times and ways convenient to taxpayer
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