Briefly state Adam Smith’s four requirements for a good tax system.

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Answer 1

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Chapter 1, Problem 1DQ

Briefly state Adam Smith’s four requirements for a good tax system.

Expert Solution & Answer

To determine

State precisely four requirements of a good tax system as per AS.

Explanation of Solution

The Tax: As defined by IRS the tax is “an enforced contribution, exacted pursuant to legislative authority in the exercise of the taxing power, and imposed and collected for the purpose of raising revenue to be used for public or governmental purposes. Taxes are not payments for some special privilege granted or service rendered and are, therefore, distinguishable from various other charges imposed for particular purposes under particular powers or functions of government.”

The four requirements of a good tax system as defined by AS are as follows;

1. Equality: Tax should be collected based on the ability to pay by the taxpayer.
2. Certainty: The taxpayer must be certain to compute the amount of tax to be paid and the mode of payment.
3. Convenience: The tax collection should be made convenient to the taxpayer, by taxing at the time income is earned that is subject to tax.
4. Economy: The cost of tax compliance and its administration should be commensurate with the tax revenue collected.

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Answer 2

Textbook Question

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Chapter 1, Problem 1DQ

Briefly state Adam Smith’s four requirements for a good tax system.

Expert Solution & Answer

To determine

State precisely four requirements of a good tax system as per AS.

Explanation of Solution

The Tax: As defined by IRS the tax is “an enforced contribution, exacted pursuant to legislative authority in the exercise of the taxing power, and imposed and collected for the purpose of raising revenue to be used for public or governmental purposes. Taxes are not payments for some special privilege granted or service rendered and are, therefore, distinguishable from various other charges imposed for particular purposes under particular powers or functions of government.”

The four requirements of a good tax system as defined by AS are as follows;

1. Equality: Tax should be collected based on the ability to pay by the taxpayer.
2. Certainty: The taxpayer must be certain to compute the amount of tax to be paid and the mode of payment.
3. Convenience: The tax collection should be made convenient to the taxpayer, by taxing at the time income is earned that is subject to tax.
4. Economy: The cost of tax compliance and its administration should be commensurate with the tax revenue collected.

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Answer 3

Textbook Question

100%

Chapter 1, Problem 1DQ

Briefly state Adam Smith’s four requirements for a good tax system.

Expert Solution & Answer

To determine

State precisely four requirements of a good tax system as per AS.

Explanation of Solution

The Tax: As defined by IRS the tax is “an enforced contribution, exacted pursuant to legislative authority in the exercise of the taxing power, and imposed and collected for the purpose of raising revenue to be used for public or governmental purposes. Taxes are not payments for some special privilege granted or service rendered and are, therefore, distinguishable from various other charges imposed for particular purposes under particular powers or functions of government.”

The four requirements of a good tax system as defined by AS are as follows;

1. Equality: Tax should be collected based on the ability to pay by the taxpayer.
2. Certainty: The taxpayer must be certain to compute the amount of tax to be paid and the mode of payment.
3. Convenience: The tax collection should be made convenient to the taxpayer, by taxing at the time income is earned that is subject to tax.
4. Economy: The cost of tax compliance and its administration should be commensurate with the tax revenue collected.

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Answer 4

Textbook Question

100%

Chapter 1, Problem 1DQ

Briefly state Adam Smith’s four requirements for a good tax system.

Expert Solution & Answer

To determine

State precisely four requirements of a good tax system as per AS.

Explanation of Solution

The Tax: As defined by IRS the tax is “an enforced contribution, exacted pursuant to legislative authority in the exercise of the taxing power, and imposed and collected for the purpose of raising revenue to be used for public or governmental purposes. Taxes are not payments for some special privilege granted or service rendered and are, therefore, distinguishable from various other charges imposed for particular purposes under particular powers or functions of government.”

The four requirements of a good tax system as defined by AS are as follows;

1. Equality: Tax should be collected based on the ability to pay by the taxpayer.
2. Certainty: The taxpayer must be certain to compute the amount of tax to be paid and the mode of payment.
3. Convenience: The tax collection should be made convenient to the taxpayer, by taxing at the time income is earned that is subject to tax.
4. Economy: The cost of tax compliance and its administration should be commensurate with the tax revenue collected.

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Answer 5

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Answer 6

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Answer 7

Expert Solution & Answer

To determine

State precisely four requirements of a good tax system as per AS.

Explanation of Solution

The Tax: As defined by IRS the tax is “an enforced contribution, exacted pursuant to legislative authority in the exercise of the taxing power, and imposed and collected for the purpose of raising revenue to be used for public or governmental purposes. Taxes are not payments for some special privilege granted or service rendered and are, therefore, distinguishable from various other charges imposed for particular purposes under particular powers or functions of government.”

The four requirements of a good tax system as defined by AS are as follows;

1. Equality: Tax should be collected based on the ability to pay by the taxpayer.
2. Certainty: The taxpayer must be certain to compute the amount of tax to be paid and the mode of payment.
3. Convenience: The tax collection should be made convenient to the taxpayer, by taxing at the time income is earned that is subject to tax.
4. Economy: The cost of tax compliance and its administration should be commensurate with the tax revenue collected.

Answer 8

Expert Solution & Answer

To determine

State precisely four requirements of a good tax system as per AS.

Explanation of Solution

The Tax: As defined by IRS the tax is “an enforced contribution, exacted pursuant to legislative authority in the exercise of the taxing power, and imposed and collected for the purpose of raising revenue to be used for public or governmental purposes. Taxes are not payments for some special privilege granted or service rendered and are, therefore, distinguishable from various other charges imposed for particular purposes under particular powers or functions of government.”

The four requirements of a good tax system as defined by AS are as follows;

1. Equality: Tax should be collected based on the ability to pay by the taxpayer.
2. Certainty: The taxpayer must be certain to compute the amount of tax to be paid and the mode of payment.
3. Convenience: The tax collection should be made convenient to the taxpayer, by taxing at the time income is earned that is subject to tax.
4. Economy: The cost of tax compliance and its administration should be commensurate with the tax revenue collected.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

State precisely four requirements of a good tax system as per AS.

Answer 12

Explanation of Solution

The Tax: As defined by IRS the tax is “an enforced contribution, exacted pursuant to legislative authority in the exercise of the taxing power, and imposed and collected for the purpose of raising revenue to be used for public or governmental purposes. Taxes are not payments for some special privilege granted or service rendered and are, therefore, distinguishable from various other charges imposed for particular purposes under particular powers or functions of government.”

The four requirements of a good tax system as defined by AS are as follows;

1. Equality: Tax should be collected based on the ability to pay by the taxpayer.
2. Certainty: The taxpayer must be certain to compute the amount of tax to be paid and the mode of payment.
3. Convenience: The tax collection should be made convenient to the taxpayer, by taxing at the time income is earned that is subject to tax.
4. Economy: The cost of tax compliance and its administration should be commensurate with the tax revenue collected.

Answer 13

Ch. 1 - Briefly state Adam Smiths four requirements for a...Ch. 1 - Based on the discussion in the chapter, evaluate...Ch. 1 - Prob. 3DQ Ch. 1 - Based solely on the definitions in the chapter, is...Ch. 1 - As stated in the text, the federal income tax is...Ch. 1 - How are federal, state, and local income taxes...Ch. 1 - How is a sales tax different from an excise tax?Ch. 1 - Who is responsible for collecting sales and excise...Ch. 1 - Prob. 9DQ Ch. 1 - Prob. 10DQ

Briefly state Adam Smith’s four requirements for a good tax system.

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