What are the qualities of a good tax system?

The Qualities of a Good Tax System may be discussed as follows- (1) Equity. The burden of tax in a good tax system should be the minimum and just. The concept of equity in taxation has two aspects- (i) The rich should bear more burden and the poor less burden or no burden.

What makes a good tax?

There are different ways for the government to raise tax revenue. While tax is often unpopular, economists set criteria for what makes a 'good' and 'fair' tax. This includes - fairness, easy to collect, non-distortionary and increases social welfare. Principles of a good tax include Vertical equity - Fair.

What are the 4 principles of taxation?

In his book The Wealth of Nations, Adam Smith presented four basic principles of proper tax policy. These rules are often referred to as the four canons of taxation: (1) equity, (2) certainty, (3) convenience, and (4) economy. Equity means that the taxes people or organizations have to pay should be proportional to their taxable income or revenue.