1. Principles of Taxation
Fairness of Taxes
Benefit Principle
Ability to Pay Principle
Types of Taxes
Progressive
Regressive
Proportionate

2. Benefit Principle of Taxation
Those who benefit from the spending of tax dollars should pay the taxes to provide the benefits. (Gasoline vs. Welfare)

3. Ability to Pay Principle
Those who can best afford to pay taxes should pay most of the taxes.

4. Progressive taxes
Takes a larger percentage of the higher incomes and a lower percentage of lower incomes. (Income Taxes)

5. Regressive Taxes
Takes a larger percentage of lower incomes and a smaller percentage of higher incomes

6. Proportional taxes
A tax that takes the same percentage of income from all tax payers.