ECON NOTES

Other tax terms
1) Horizontal equity- tax structure in which people with equal income pay equal amount of tax.
2) Vertical Equity- tax structure in which people with unequal income pay unequal amount of tax.
3) Shifting taxation- process of passing the burden of the tax to others
Specific Kinds of taxes
1. Personal Income tax- tax imposed on individual income
2. Corporate Income tax- tax imposed on corporate income
3. Real Property Tax- tax imposed on land and permanent structures
4. Sin Tax- Tax imposed on products hazardous to health
Tax evasion exists…
 Under- declaration of income
 Non-declaration of income
 Over-declaration of income
 Under appraisal of goods subject to tariff
Tax Reforms
- To improve tax collection and promote a more equitable system of taxation

*** 2 Quizzes next meeting
Q#3 PUBLIC SECTOR>> classification of taxes
Q#4 OTHER TAX TERMS>>tax reform