Just Tax Theory to a Fair Tax System

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In summary, the conversation discusses the concept of a "Just Tax Theory" and its potential benefits. The idea is to create a guideline for a consumption-based tax that would be fair to all individuals, particularly the poor. This would involve taxing certain items or behaviors based on their impact on society and individuals. However, the conversation also acknowledges the difficulty of implementing such a tax system and the potential conflicting purposes of taxation.
  • #1
Pengwuino
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Is there a such thing as a Just Tax Theory? It has been brought to my attention that the academic world has a little mental excercise and made a Just War Theory so how bout a Just Tax Theory?

If not, what would you guys feel is a good guideline for a "just tax"
 
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  • #2
consumption based tax that allows the poor to pay very little of their income
in taxes but hits the bigger users at a progressive rate

something like real property tax with a homestead exemption where a small older home pays little tax and large buildings carry most of the tax load

unlike sales tax that is regressive hitting the poor hardest

and unlike SIN taxes on alcohol or tabacco the hurt only some and are not based on income at all
 
  • #3
No i mean like... let me add to this concept.

If you have a new society built and you need to decide what things need to be taxed, what woudl be a good criteria for selecting such things?

We have taxes on things such as house sales, employment income, inventory, beer, guns, cigarettes, cars (a large # of taxes so i mean individual taxes, not just a target for the tax), etc etc. I am looken for logical explanations too (using logic to explain the tax). I hope on the side, this thread will also help me or others understand WHY some things are taxed the way they are.
 
  • #4
Pengwuino said:
If you have a new society built and you need to decide what things need to be taxed, what woudl be a good criteria for selecting such things?
Is there a such thing as a Just Tax Theory?
I've never heard of such a thing, but it sounds like a good idea to me. People try to apply morality to taxes on an individual basis (ie, "sin" taxes), but I've never heard of a coherent "philosophy of taxation" - with the one exception being regressive vs progressive.

So let's develop one...

To start, you need to state the purpose of taxes.

The primary purpose is easy:
-To make money to support the functioning of government.

Secondary purposes are more problematic:
-To redistribute wealth.
-To guide certain behaviors.
-To help/harm certain business/individuals.
 
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  • #5
The only possible form of taxation that can be fair would tax each individual at exactly the rate at which they use the public services paid for by taxes. This, however, is not possible as far as I can tell.
 

Related to Just Tax Theory to a Fair Tax System

1. What is the purpose of "Just Tax Theory: A Guide to a Fair Tax System"?

The purpose of "Just Tax Theory" is to provide a comprehensive guide to creating a fair tax system that benefits all members of society. It outlines the principles and strategies for designing a tax system that promotes equality, simplicity, and efficiency.

2. How does "Just Tax Theory" define a fair tax system?

According to "Just Tax Theory", a fair tax system is one that distributes the tax burden equitably among all individuals and promotes social justice. This means that everyone, regardless of their income level, pays their fair share of taxes and the system does not unfairly benefit any particular group or individual.

3. What are some key principles outlined in "Just Tax Theory" for creating a fair tax system?

"Just Tax Theory" advocates for the principles of progressivity, simplicity, transparency, and efficiency in tax design. Progressivity means that the tax burden should increase with income level. Simplicity refers to a tax system that is easy to understand and comply with. Transparency ensures that the public can easily see where their tax dollars are being allocated. Efficiency means that the tax system should not create unnecessary burdens for individuals or businesses.

4. How does "Just Tax Theory" address the issue of tax loopholes and exemptions?

"Just Tax Theory" argues that tax loopholes and exemptions create an unfair advantage for certain individuals or corporations and can lead to a regressive tax system. It suggests eliminating these loopholes and exemptions and instead implementing a more straightforward and progressive tax system that benefits all members of society.

5. Can "Just Tax Theory" be applied globally?

While "Just Tax Theory" is based on the principles of fairness and social justice, its specific recommendations may not be applicable to all countries due to variations in economic and social systems. However, the underlying principles of progressivity, simplicity, transparency, and efficiency can be adapted to create a more fair tax system in any country.

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