Adam Smith's Cannon for Evaluation of Tax Structure includes:
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Incidence of tax is defined by the degree the tax burden is shared by the taxpayers. Incidence and the tax burden are almost interchangeable in some context, just like this one.
Tax rates are applied to the tax base to determine the tax liability and may be either be proportional or progressive. Proportional are similar income tax rates by group, where progressive are higher tax rates skewed to the higher income group.
The tax base is the amount to which the tax rate is applied, and for instance, the Federal income tax will be considered the tax base for taxable income.
In 1909, the First Federal corporate income tax enacted and in 1913, the 16th Amendment was ratified, which sanctioned both Federal individual and corporate income taxes. ratified is the act to sign or give formal consent to an agreement.
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