Theories of Taxation and Taxation Structure. Taxation is considere-d as one of the government source funds. In specifics, taxation practice aim at funding most of the government in paying civil workers and country’s development. However, the fairness of the taxation practice is institute-d and analyze-d by economist. Thus analysis acts as a way of ensuring fairness and equality prevails. There are three primary theories of taxation theories propose-d by economist to guide Countries of valid taxation practices that will enhance equality and fairness to the public. This paper profoundly discusses on the three main theories of taxation, namely, Benefit Theory, the Cost of Service Theory and Ability to Pay Theory.

Benefit Theory

The benefit theory is mainly feature-d on the output given to the public. In other words, the theory advocates for the levying of taxes to the public as per the benefits provided to person via the state’s activities (Hongler & Pistone 2015). In simpler terms, an individual who benefits more should pay higher taxes to the government. The main aim of this theory was to balance the taxes with revenue created by the public, whereby a person earning more would pay tax proportional to the low citizen earner (Theories of Taxation).

Benefit theory Critics

The theory is against the fundamental principle of tax. Technically, tax is a mandatory portion given to the state for the general public benefit and government expenses (Taxation Structure). Therefore, the quantification of benefits gained to conclude payments, provides a controversial ground on the tax principle which advocates for general benefit. Another critic of the theory is based on the principle of practice. In regards to benefit theory, the principle of practice generally institutes for the poor to heavy taxes to the government; since they befit more from the state practices (Theories of Taxation). However, heavy taxation on the poor would be a violation of the principle of justice.