taxation

Examples of taxation in the following topics:

• Taxation Without Representation

  • "No Taxation without Representation" was the rallying cry of the colonists who were forced to pay the stamp, sugar, and tea taxes.
  • "No taxation without representation," a slogan originating during the 1750s and 1760s that summarized a primary grievance of the British Colonists in the 13 colonies, was one of the major causes of the American Revolution .

• Financing the US Government

  • Taxation is the central part of modern public finance.
  • The importance of taxation arises from the fact that it is by far the most significant source of government revenue and is therefore the primary means of financing government expenditures .
  • Due to the pervasive nature of taxation, taxes can be used as an instrument of attaining certain social objectives.
  • Taxation is also used as part of fiscal policy to stabilize the economy.

• Fiscal Policy and Policy Making

  • Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy.
  • In economics and political science, fiscal policy is the use of government budget or revenue collection (taxation) and expenditure (spending) to influence economic.
  • The two main instruments of fiscal policy are government taxation and expenditure.
  • Changes in the level and composition of taxation and government spending can impact the following variables in the economy: (1) aggregate demand and the level of economic activity; (2) the pattern of resource allocation; and (3) the distribution of income.

• What Taxes Do

  • This type of taxation is referred to as progressive taxation because the tax liability increases in proportion to income.
  • Sales tax is a form of regressive taxation; the liability is based on the percentage of income consumed, which is higher for low income earners.
  • Explain the role of taxation with respect to consumer and firm behavior

• Defining Fiscal Policy

  • Fiscal policy is the use of government spending and taxation to influence the economy.
  • Fiscal policy is the use of government spending and taxation to influence the economy.

• The Stamp Act

  • Colonial uprising following the direct taxation on printed materials led to the first joint colonial response to British measures.
  • The Stamp Act met great resistance in the colonies, and the First Congress of the American Colonies, also known as the Stamp Act Congress, was held in 1765 to devise a unified protest against British taxation.
  • The theoretical issue that would soon hold center stage was the matter of taxation without representation.
  • Thomas Whately enunciated this theory in a pamphlet that readily acknowledged that there could be no taxation without consent, but the facts were that at least 75% of British adult males were not represented in Parliament because of property qualifications or other factors.
  • The colonists enjoyed actual representation in their own legislative assemblies, and the issue was whether these legislatures, rather than Parliament, were in fact the sole recipients of the colonists' consent with regard to taxation.

• Social Classes in the Colonies

  • However the growing strength of republicanism created a political ethos that resisted imperial taxation without local consent.
  • Led by Virginia, the Southern Colonies resisted the British policy of taxation without representation, and they supported the American Revolution, sending wealthy planters like George Washington—to lead the armies—and Thomas Jefferson—to declare the principles of independence, as well as thousands of ordinary people to form armies.
  • Republicanism provided the framework for colonial resistance to British schemes of taxation after 1763, which escalated into the American Revolution.

• Finance

  • Discord between the states and the federal government over taxation and trade further weakened the legitimacy of the Articles of Confederation.
  • Under the Articles of Confederation, Congress was denied any powers of taxation: it could only request money from the states.

• How Income is Allocated

  • Policy reforms and regressive taxation have promoted disparity but are relatively minor contributors to existing inequality.
  • One way in which governments attempt to decrease income inequality is through progressive taxation.

• Disadvantages of Corporations

  • In many countries, corporate profits are taxed at a corporate tax rate, and dividends paid to shareholders are taxed at a separate rate -- double taxation.
  • This is the concept of double taxation: first the company was taxed for its profits, and later shareholders were taxed for their dividends.
  • Such a system is sometimes referred to as "double taxation", because any profits distributed to shareholders will eventually be taxed twice.