McGraw-Hill OnlineMcGraw-Hill Higher EducationLearning Center
Student Center | Instructor Center | Information Center | Home
Glossary
Calculators
Modules
Student Quizzes
Chapter Objectives
Research Projects
Student Quizzes
Internet Applied Exercise
PowerPoint Presentations
Internet Links
Feedback
Help Center


Principles of Taxation for Business and Investment Planning, 5/e
Sally M Jones, University of Virginia
Exploring the Tax Environment
Tax Policy Issues: Standards for a Good Tax

Chapter 2 Objectives

After studying this chapter, you should be able to:

1. Explain the concept of sufficiency as a standard for a good tax.

2. Differentiate between the income effect and the substitution effect of an increase in income tax rates.

3. Compare the concept of a convenient tax from the government's viewpoint and from the taxpayer's viewpoint.

4. Contrast the classical economic standard of tax neutrality with the Keynesian concept of taxes as a fiscal policy tool.

5. Define horizontal and vertical equity.

6. Differentiate between a regressive, a proportionate, and a progressive tax rate structure.

7. Explain the difference between marginal and average tax rate.

8. Discuss the concept of distributive justice as a tax policy objective.





McGraw-Hill/Irwin




Copyright2002 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.