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The Purpose of Taxation - Coggle Diagram

- - - - Ability-to-pay principle
      - Those who earn more should contribute more
    - - Clear rules on when, how, and how much tax is owed
    - - Easy for taxpayers to pay (e.g., PAYE)
    - - Cost of collecting tax should be low relative to the revenue collected
    - - System should be easy to understand
    - - Should adjust when the economy changes
- - - - E.g., carbon tax to reduce emissions
      - Excise duty to discourage smoking/drinking