GOVERNMENT REVENUE

Reynaldo Maruli021141014Ekonomi PembangunanUniversitas Trisakti

Source of Government Revenue Tax Retribution Profit from Government Company (BUMN) Public Donation Printing of Banknotes

A. Distribution Load of GovernmentAccording to Smith’s Conons, that is: The Principle of Equality The Principle of Certainty The Principle of Convenience The Principle of Economy

The Principle of EqualityThe principle aims at providing economic and social

justice to the people. According to this principle, every person should pay to the government depending upon his ability to pay. The rich class people should pay higher taxes to the government, because without the protection of the government authorities (Police, Defence, etc.) they could not have earned and enjoyed their income. Adam Smith argued that the taxes should be proportional to income

The Principle of CertaintyAccording to Adam Smith, the tax which an individual

has to pay should be certain, not arbitrary. The tax payer should know in advance how much tax he has to pay, at what time he has to pay the tax, and in what form the tax is to be paid to the government. In other words, every tax should satisfy the canon of certainty. At the same time a good tax system also ensures that the government is also certain about the amount that will be collected by way of tax.

The Principle of ConvenienceThe mode and timing of tax payment should be as far

as possible, convenient to the tax payers. For example, land revenue is collected at time of harvest income tax is deducted at source. Convenient tax system will encourage people to pay tax and will increase tax revenue.

The Principle of EconomyThis principle states that there should be economy in

tax administration. The cost of tax collection should be lower than the amount of tax collected. It may not serve any purpose, if the taxes imposed are widespread but are difficult to administer. Therefore, it would make no sense to impose certain taxes, if it is difficult to administer.

B. Benefit Approach and Ability to Pay Approach Benefit Approach is principle of tax based on the benefits

received by someone compulsory tax from tax payment to government.

Ability to pay approach is principle of ability to pay or based on a compulsory tax.

C. Concept of equal sacrifice Principle of Sacrifice classified into 3 types, that is: Equal absolute of sacrifice. Equal propotional of sacrifice. Equal marginal of sacrifice.

System of Taxation and Tax Politic Tax is said to be progressive if tax with percentage an

increasing high with ability of taxable capacity Tax is said to be proportional if tax with percentage

comparable to with growth income after minus with needs essential.

Relocation Of Tax Expense In the sense of whether or not the economic problems it brings consequence tax burden on the kinds of tax naturethe actual process of shifting the tax burden can be specified in four stages:1.First Stage, tax expense located on people (compulsory tax). who conducted the calculation of payments to the state, with the imposition of the tax itself for the people who pay taxes at the tax office referred to the impact of taxation2. This stage is the process of the transfer of the tax burden to the tax burden bearer3. The emergence of the monetary burden of the past after a shift and the tax burden will not be shifted again4. the consequences referred to the effects of taxation

The Relationship BetweenThe Company and The Market

what we have talked about in the beginning is an event.that is in the market of goods that are taxed.so why the unity of taxable sales of goods sold can shift. the tax burden to consumers?if the market is perfectly competitive market, the respective producers will not raise the price of the goods individually. The new price will be increased if the seller together trying to raise the price of goods Sold.

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