‫مالیه گذاری‬

‫سال تحصیلی‪ 1389 :‬هجری شمسی‬

‫صنوف ‪ :‬سوم‬
‫استاد مضمون‪ :‬وهاب زاده‬
Objectives of applied tax theory 1
 Rising revenue: Most taxes at the state and local
level are, for the purpose of raising revenue, and the
goals of raising revenue is to provide public goods
and services, to create welfare revenue for its
citizens and make better of the people within the
country.
 Economic price stability: The most fundamental
reason of a government is to provide a reasonable
degree of price stability within a country, whether the
Government of a country can do it by some policies
e.g. fiscal policy and monetary policy to avoid
inflation, unemployment, Externalities and so on. The
result would be for economic growth
Objectives of applied tax theory 2
 Economic Growth and full Employment:
taxation as a part of fiscal policy is, generally
accepted as one of the tools which are
available to the government for achieving
those economics goals.
The government can create economic Growth
and full Employment by reduction of personal
and corporate tax e.g. (Regressive Tax)
Objectives of applied tax theory 3
 Income and Wealth Redistribution: This is the
important objective of taxation that the government
can collected more taxes from the people who has
high income or from the rich people who has high
level of income and wealth by taxes e.g. (Progressive
tax rate)
 Using of tax system for non-objectives. Each
country’s government can use the tax system for
encourage or discourage certain activities e.g. the tax
system can be use to correct market failures such as
positive and also negative externalities.
 principle of taxation 1
1. Tax efficiency :
 Low Administration and compliance cost
Administration costs are borne by the
Government to collect taxes. For example
the cost of processing tax returns and
providing taxpayer assistance.
Compliance costs which are the costs
imposed on taxpayer to comply with the tax
low.
 principle of taxation 2
 Low level of Excess burden (The welfare
cost of taxation): The cost of taxation is
sometimes referred to as the excess burden
of taxation (deadweight loss) of taxation
 when the government imposes the tax with
high rate on goods and services, these tax
may distort consumer choice between goods
and or producers choice between factors.
 principle of taxation 3
 consumer choice: (Income effect of tax and the
substitution effect)
From an efficiency stand point minimum Excess
Burden (welfare cost of taxation ) is most
desirable and it is one of the best policies in a
good tax system.
P

S+T

S
Tax
Pd
Excess Burden of tax
P0
Ps

Q
Q2
 principle of taxation 4
2-Tax Equity: Every one agrees that the tax system
should be Equitable that each taxpayer should
contribute his or her fair share to the cost of
government.
 Benefit principle: The benefit principle argues that the
means of financing government supplied goods and services
should be linked to the benefit of citizen that received and used.
 Ability to pay principle: The ability to pay principle is the
second main principle of the tax equity, the ability to pay
principle as its name suggests, state that individual should pay
taxes in proportion of their ability to pay.
 principle of taxation 5

Ability to pay principle

 Tax system and individual taxes can be classified
in to progressive, regressive and proportional.
1. A progressive tax
2. A regressive tax
3. A proportion tax

Progressive

Proportional

Regressive
 principle of taxation 6

3- Adequateness for financing public goods:

 Types of tax
 Direct Taxes
 Indirect Taxes