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Equilty - Essay Example

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Summary
Different countries have systems of getting the tax which differ significantly. No citizen pays taxes willingly though they are aware of its functions and the consequences of not paying it…
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Equilty
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Equilty

Download file to see previous pages... There are many issues that are involved in the way citizens are expected to pay their taxes, which cannot be generalized to bring an agreement. Different levels of income are an example that contributes to these disagreements. The high income earners will not be expected to pay the same tax as the low income earners. This is what economists refer to as the ability to pay principle (Blum and Kalvern 2011). This principle argues that one should pay tax according to his power to pay. People who have high income are able to pay; hence they are supposed to pay more tax. This shows that large amounts of taxes will come from rich people. The benefit principle is another system that governments use to get taxes from the citizens (Blum and Kalvern 2011). Everyone who benefits from the outcomes of taxes is supposed to pay it accordingly. This signifies that there will be no balance in paying the taxes among the citizens since, different people gains differently from the functions of the taxes. People in towns will pay more than those in rural areas who get less access to the outcomes of the taxes paid.
Conclusion However, equity goes hand in hand with fairness. The two concepts mentioned above may both bring disagreements, but an agreement may some how be reached if the benefit principle is enforced. Blum and Kalvern (2011), consumers will always want to maximize their utility and minimize the cost. Therefore, people from every part of the country will feel the worth of the payments they make hence no ...Download file to see next pagesRead More
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