What's it: Government revenue is money earned by the government for carrying out its activities. Taxes are the main source. In addition, the government also derives its revenue from non-tax sources such as contributions from state-owned
Induced Tax: Examples, How they Work, Effects on the Economy
What's it: An induced tax is a tax in which the rate increases and decreases depending on the taxpayer's ability. So, when our income or wealth rises, we have to bear high rates. Conversely, a decrease in income leaves us with a lower tax bill.
Ability to Pay Taxation: Meaning, Examples, Pros, and Cons
What's it: Ability to pay taxation is a taxation principle that says taxes should be per the taxpayer's ability level. That is the main principle of implementing a progressive tax. Thus, people on higher or richer incomes should pay higher taxes
Laffer Curve: Meaning, How it Works, Tax Rate Policies
What's it: Laffer curve is a graphical representation of the relationship between the tax rate and total government tax revenue. The curve takes its name from Arthur Laffer, the American economist. This curve shows you the revenue-maximizing tax