principle of tax moderation

，关于税收适度原则 The Principle of Taxation Moderation

The purpose of taxation is to raise funds for the efficient operation of a government or other legal authority. Governments rely on taxation for the revenue needed to fund their operations, reduce the budget deficit and enhance the equity of a fiscal system. The principle of taxation moderation prescribes the use of taxation in a responsible and moderate manner, in order to ensure its fairness and efficiency, and to achieve the desired macroeconomic objectives.

Taxation can be broadly classified into direct and indirect taxes. Direct taxes are taxes, such as income taxes, which are imposed directly on the individuals, entities and activities to which they apply. Indirect taxes, such as sales taxes and value added taxes, impose taxes on services and/or products.

Taxation moderation emphasizes that taxation should not be excessive and should be administered in a fair and equitable manner. This means that the government should ensure that the burden of taxation is not too heavy on any particular group of individuals or economic sector. Excessive taxation imposes an economic burden on individuals and businesses, leading to a decrease in economic activity, which can negatively affect economic growth and prosperity.

Taxes should also be applied in a equitable manner. Taxing income at different rates for different income levels encourages people to work hard, save and invest, which can lead to economic growth and development. Similarly, reducing tax rates for certain groups of individuals and businesses can encourage them to be more productive. Similarly, certain incentives and deductions should be used to encourage investments and other productive activities.

The goal of taxation moderation is to achieve a balance between revenues and expenditures, while ensuring that taxes are not too costly or burdensome. Similarly, taxes should be structured in a way that is in line with the individuals needs, abilities to pay and the macroeconomic objectives. In order to achieve these objectives, the government must have a comprehensive understanding of the economic, social and political factors influencing taxation.

Taxation moderation should also be applied to international taxation. International taxation is governed by treaties and other international agreements. A treaty or agreement is applicable to all countries party to it and must be interpreted in accordance with the principles of taxation moderation. This means that a treaty should aim to ensure that taxation is applied in a fair, equitable and cost-effective manner to all parties.

In conclusion, taxation moderation is an important principle that prescribes the use of taxation in a responsible and equitable manner and for the achievement of the desired macroeconomic targets. This can be achieved through the application of a comprehensive approach, including the use of incentives and deductions, equitable application of taxes and appropriate international taxation agreements. The goal of taxation moderation should be to ensure that taxation is fair, efficient and cost-effective and meets the needs of individuals, businesses and the macroeconomy.

The principle of taxation moderation is an essential component of responsible fiscal management. In essence, it proposes that taxation should be sustained at a rate that does not place an undue burden on individuals, businesses and other organisations, yet still is sufficient to finance public services, programs and infrastructure initiatives.

Taxation moderated thus seeks to provide a balance between economic restrictions posed by high taxes and public services and programs that would be jeopardised with the absence of taxation. Therefore, the tax burden should be appropriate enough to ensure that public sector takes an adequate amount of revenue but not so much so as to impede economic growth or put an undue burden on businesses, citizens and other entities.

For taxation moderation to be achieved, governments should take comprehensive approaches which include setting appropriate rates, enriching the tax tribune base, closing legal loopholes and applying other measures to increase efficiency. Governments must also work to ensure that taxes — individual and corporate — are collected promptly and appropriately while minimising compliance costs.

Tax moderation is equally important for the larger macroeconomic picture. Economic growth is heavily influenced by the taxes imposed on individuals and businesses. Too many or too few taxes mean a lack of investments in key public services and programs as well as a lack of funds to support economic development. As a result, governments would have to borrow funds from external sources, thereby increasing public sector debt and reducing fiscal space.

In reality, achieving an appropriate balance between taxation and public services and programs is an ongoing challenge for governments across the world. It requires cooperation from the public and private sector to ensure that adequate public services are in place while taxes are low enough to provide incentives for businesses to thrive. Ultimately, the goal should be to assess and adjust levies when necessary to ensure that taxation remains at a moderated rate.