A problem is a position (situation) that requires an internal effort of the system or external intervention, in order to eliminate the existing (arisen) uncertainty, inconvenience, contradiction, resistance, etc. The presence of a permanent problem of taxation does not raise doubts among anyone who is directly connected with this reality, or subjected the existing economic system to an independent analysis, or read this article to the end.
The problem of taxation is obvious and lies on the surface, representing a confrontation between two parties, where one side wants to legally take its money from the other. The second side resists, considering the existing taxes (all or part of them) to be unfair, which is also justified, since the collection of taxes is a monopoly, and that is why the rules and procedures for tax collection cannot be crystal clear.
A democratic state implies the existence of a Social contract, democratic institutions and procedures for making decisions by the current legitimate state power (government bodies), which (decisions) have as their goal the protection and well-being of the citizens of this state. Hence, everything that is not a state secret, ideally, should be discussed and approved by the majority. However, it should be stated that in the current version of democracy, the state power has the right to unilaterally adopt and amend tax legislation, introduce new taxes, increase or decrease tax rates, add and eliminate taxation systems, impose fines, terms, penalties, etc. Moreover, everywhere and at all times, in one form or another, there was a ban on discussing the tax policy of the authorities, for obvious reasons, and non-payment of taxes, and today is considered one of the most prosecuted and punishable crimes against the state. The issue of the shortcomings of the tax policy of the authorities is never raised by anyone during elections, referendums and other existing forms of expression of the will of citizens and enterprises. Thus, in his tax relationship with the authorities, the rights of the taxpayer are always flawed, he either pays or receives inevitable punishment, and this position is in the interests of the authorities. As they say, this is how the world works and therefore it still exists.
The authors of the NEC2020 Concept do not criticize the tax policy of any and any state, but draw attention to the very fact of the existing situation, which is defined as a problem. The authors considered it necessary to include an article on this topic in the monograph, thereby offering it for discussion and search for solutions to the problem of taxation to everyone who has original ideas applied to this part of economic relations. The authors of the Concept "New economy of consumption" take part of their time to search for a solution to the "tax" contradiction and calculate the found solution, propose it for consideration and criticism.
Taxation is a system of withdrawal of funds by an authority subject (state or municipal authorities) from a subordinate object. In history, there are frequent cases of forcible seizure of property, but in our time, seizure usually occurs on a voluntary-compulsory basis. The taxation system is a complex of all taxes and fees. The foundations of this system are enshrined at the state level in special tax codes or other regulatory legal acts. Taxation is the main source of funding for government agencies.
Principles of taxation.
The principle of obligation - the payment of taxes is obligatory and inevitable.
The principle of equality - the distribution of taxes must be equal, that is, the taxes paid must be equal to the benefits that taxpayers receive (or can receive) from the state.
Principle of certainty - the rules for paying taxes should be determined in advance, before the due date.
The principle of economy - the cost of taxation should not exceed 7% of revenues, otherwise the taxation system will be ineffective.
The principle of proportionality - determination of the tax limit in relation to GDP.
The principle of mobility is the ability of the taxation system to expand quickly in the event of extraordinary, unforeseen expenses of the state.
The principle of stability is a normal interval of changes in taxation in developed countries - no more than once every three to five years.
The principle of optimality - the optimal choice of sources and objects of taxation.
The principle of unity - tax law is the same for all individuals and legal entities throughout the country.
The principle of fairness - sanctions for non-payment or late payment of taxes should be consistent with the responsibility of the tax authorities in case of unlawful fines, unreasonable fees, as well as errors and miscalculations.
The principle of convenience in collecting taxes - tax payment should not cause inconvenience to taxpayers in terms of the place and time of payment.
Article in ORIGINAL language HERE