Taxation principles
The aim of taxation is to generate income ( Section 3 AO ). Taxation must be based on certain taxation principles . The principle of fair taxation has a prominent place here.
Taxation principles according to Adam Smith
The first generally accepted principles of taxation go back to Adam Smith , who formulated his four tax cannons in 1776 :
- Equality: Taxpayers should be taxed equally in relation to their income.
- Certainty: Taxation should be determined precisely and not arbitrarily.
- Convenience: Tax collection should not unnecessarily burden taxpayers.
- Cheapness (economy): collection costs should be as low as possible.
Taxation principles according to Adolph Wagner
In the German-speaking world, Adolph Wagner was probably the first financial scientist to formulate taxation principles in 1890.
- fiscal principles
- Sufficiency: The coverage of the tasks that can be financed by taxes must be guaranteed. - Mobility: If necessary, it should be ensured that additional income can be acquired at short notice.
- economic principles
- Choosing the right tax sources (income, earnings, capital) - Choosing the types of tax, taking into account their effects and passing on
- Principles of justice
- General public: All taxable persons must be taxed. - evenness
- Tax Management Principles
- certainty - convenience - cheapness
Taxation principles according to Fritz Neumark
In the more recent past Fritz Neumark has drawn up detailed taxation principles on which public finance is still based today.
- Fiscal-budgetary principles
- Sufficiency: The coverage of the tasks that can be financed by taxes must be guaranteed. - Ability to increase: If necessary, it should be ensured that additional income can be acquired at short notice.
- Ethical and social policy principles
- General public: All taxable persons must be taxed - Uniformity: The same facts should be taxed equally (horizontal tax justice). - Proportionality: Different circumstances may be taxed differently (vertical tax justice). - Redistribution: Taxation should be used to correct income (redistribution).
- Economic policy principles
- Avoidance of tax policy measures - Minimization of tax interventions - Competition neutrality: Taxation should not impair competition. - Active flexibility: The tax revenue should be able to adjust to economic requirements by means of discretionary measures. - Passive flexibility: The control system should be able to develop automatic stabilization effects (built-in flexibility). - Growth policy orientation: Taxation should not inhibit economic growth.
- Tax law and tax engineering principles
- The lack of contradictions and systematic nature of measures: Tax gaps and double taxation should be avoided. - Transparency: Tax rules should be easy to understand. - Practicability: Taxation should take into account the capacities of the financial administration and taxpayers. - Consistency of tax law norms: Tax rules should only be changeable at larger intervals. - Inexpensive: minimization of tax collection costs - Convenience: minimization of the burden of tax obligations
Requirements for a rational taxation according to Heinz Haller
The German financial scientist Heinz Haller had formulated requirements for a rational tax system on the basis of the taxation principles.
- Fiscal Objective
- Collection equity: minimization of tax collection costs - equity payment: minimization of the burden of tax obligations - burden relief: tax burdens should be felt as little as possible and economic activity should be impaired as little as possible.
- Prosperity objective
- Neutrality: the optimal allocation of production factors should not be disturbed by taxation. - Economic policy efficiency: Taxes should be used effectively for economic and employment policy purposes.
- Justice goal setting
- Distribution policy efficiency: Income distribution should be able to be influenced by taxation. - Respect for privacy: disclosure of personal data should be limited to what is absolutely necessary. - Inner cohesion: contradicting tax rules should be avoided.
Individual evidence
- ^ Building blocks for a reform of the tax system . (PDF) German Taxpayers Institute
- ^ Adam Smith , An Inquiry into the Nature and Causes of the Wealth of Nations . London; in German translation: HC Recktenwald: The prosperity of the nations , 12th edition. Munich 2009, p. 703 ff.
- ^ Adolph Wagner: Finance, Fees and General Taxation . In: Wagner, Nasse: Textbook of Political Economy . 6th volume, 2nd part. Leipzig / Heidelberg, p. 220 ff.
- ^ Fritz Neumark : Principles of just and economically rational tax policy . Tubingen 1970.
- ^ Heinz Haller : Financial Policy . 2nd Edition. Tübingen 1961, p. 217 ff.
- ↑ Heinz Haller : The taxes . 3. Edition. Tuebingen 1981.
