Tax Policy: Theories & Explanations

Why do governments tax? Should taxes be enforced at identical rates across all income levels? Which taxes should indigent citizens be exempt from paying? What role should government’s play in providing services? Which services should be funded with taxpayer dollars?

These questions, along with countless others, have long been the subject of intense debate. There is, however, one area of consensus: taxes are paid by hard-working citizens and, thus, tax revenue should not be spent without good cause. With that understanding, this section addresses historical and modern tax policy theories. Links to studies, reports, articles by economists, as well as blogs will provide readers with a collection of unbiased, educational information.

Gauging Tax Rate Level “Fairness” – Comparing Rates across Developed Countries

Tax rates are ever-changing. Often times, they change as a result of burgeoning national expense projections and increased reliance on government programs. When rates happen to increase, most taxpayers sigh collectively. But why (other than their pockets being dug into a bit deeper)? What is the basis for their discontent? In other words, what triggers […]