Income Tax - Theories

Because of the importance of income tax as an instrument of government fiscal policy, there are a number of important theories about the role of taxation in an economy. Follow the links below for more details of each theory:

• T1 Canons of taxation - what makes a good tax?
• T2 Progressive or regressive - who pays what?
• T3 Marginal and average tax rates - who pays how much?
• T4 Demand-side or supply-side? - tax as a policy tool
• T5 The Laffer curve - who pays how much?