The Mansion ten canon of taxation is a set of principles proposed by economist Henry George in his book "Progress and Poverty." These principles highlight the characteristics that an ideal tax system should have. Here are the ten canons:
1. Simplicity: The tax system should be simple and easily understood by taxpayers, minimizing confusion and reducing compliance costs.
2. Certainty: Taxpayers should be able to know in advance how much tax they owe and when it is due. This principle ensures stability and predictability.
3. Equity: Taxes should be imposed in a way that is fair and just, considering the ability to pay. The burden of taxation should be distributed proportionately to taxpayers' income or wealth.
4. Efficiency: Taxes should be structured to minimize economic distortions and provide incentives for productive activities. This means avoiding taxes that discourage work, savings, investments, or entrepreneurship.
5. Convenience: The tax system should be convenient for taxpayers, making it easy to file tax returns, calculate taxes owed, and pay taxes.
6. Neutrality: Taxes should not favor or discriminate against certain industries, products, or individuals. This principle ensures that the tax system does not influence economic decision making.
7. Flexibility: The tax system should be flexible enough to adapt to changing economic circumstances or policy needs without severe disruption.
8. Diversity: Tax revenue should be obtained from a broad-based and diverse tax base, rather than relying heavily on one or a few sources. This reduces the risk of revenue volatility and creates a more stable tax system.
9. Economy: The cost of tax administration and collection should be kept as low as possible to minimize resource waste.
10. Productivity: Taxation should aim to generate sufficient revenue for public expenditure needs without hindering economic growth and prosperity.
Overall, these ten canons provide a framework for designing a tax system that is efficient, equitable, and conducive to economic growth.
Mansion ten canon of taxation
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