الإيرادات العامة والضرائب

Chapter Ⅰ: Meaning and Sources of Public Revenue

• Public revenue is a branch of public finance, focusing on the state's income sources.
• Sources include taxes, commercial revenue (prices from public enterprises), administrative revenue (fees, fines), and gifts/grants.
• Government income is crucial for fulfilling government expenditure, mirroring the relationship between production and consumption in the economy.
• Modern public revenue aims not only to generate income but also to influence production, employment, planning, and economic operations.
• Prof. Dalton defined public revenue in narrow and wider senses:
  • Narrow sense: Includes tax income, public sector enterprise prices, and administrative revenues.
  • Wider sense: Includes all government income during a period, including borrowing and public enterprise income = public receipts.
• Public revenue is a subset of public receipts, excluding government borrowing and currency issuance.

Section Ⅱ: Main Sources of Public Revenue

• Countries commonly rely on various revenue sources, including:
  • Personal income and corporate taxes
  • Value-added/sales taxes
  • Selective sales taxes (excises) on goods with inelastic demand
  • International trade taxes
  • Property and asset taxes
  • Payroll taxes
  • Non-tax revenues (fees, charges, penalties, enterprise profits)

Chapter Ⅱ: Taxes

Section I: Definition of Tax

• Various definitions exist, highlighting compulsory contributions for government services, devoid of direct benefits to the taxpayer.
• Key definitions from different scholars are provided (Bartable, Seligman, Trussing, Taylor, Bastable).

Section II: Elements of Tax

• Compulsory Contribution: Payment required irrespective of individual will or consent, with penalties for refusal/delay.
• Generally in Monetary Form: Primarily paid in money for operational liquidity and valuation certainty.
• Proportionate/Based on Ability to Pay: Taxation typically based on ability to pay, with higher earners contributing more.
• Levied on Various Objects: Can be levied on individuals, property, rights, acts, privileges, or transactions.
• No Benefit Condition: Taxes are compulsory, not linked to a direct benefit received.
• Levied by a Jurisdictional Entity: Implied that the levying authority has control over the taxable item.
• Levied by Law-making Body: Taxes are legislative powers generally given to local governments (with limitations and guidelines from national laws), usually requiring representation of citizenry.
• Public Purpose: Tax revenue is for public use, not private, exclusive benefits. Courts can check this purpose.

Section III: Canons of Tax

A. Adam Smith's Four Canons of Taxation

• Equality/Equity: Taxpayers in similar economic positions should pay similar amounts; modern economists promote progressive taxation due to concerns of proportionality.
• Certainty: Tax liability must be clear, predictable, and not arbitrary; clear payment methods and timings are essential.
• Convenience: Taxes should be collected conveniently for the payer (time, method); example: income tax withholding.
• Economy: Collection cost should be minimized.

B. Other Canons of Taxation

• Productivity: Taxation should effectively generate revenue for government operations, and, ideally, stimulate production in addition to financing expenditures.
• Simplicity: Tax systems should be simple to understand and administer, to avoid evasion or corruption.
• Elasticity: Tax revenue needs to be adjustable to economic conditions (increase/decrease as needed).
• Diversity: Using multiple types of taxes can ensure adequate revenue collection and broad-based citizen participation.

Section IV: Purposes of Taxes

• Raising Revenue: Primarily to finance government services. It reduces reliance on borrowing.

• Redistributing Income/Wealth: Aims to reduce income inequality through progressive tax systems and targeted benefits/subsides for lower income levels.

• Encouraging/Discouraging Activities: Offers incentives (subsidies) or disincentives (higher taxes) to control certain behaviors/activities (e.g., saving, fuel efficiency, smoking).

• Promote Investments/Economic Growth: Adapting tax policies to stimulate/support economic growth and investment during recessionary and booming periods.

• Stabilizing Prices/Curbing Inflation: Using taxes as a tool to impact demand and supply to control price changes and inflation.

• Addressing Externalities: Taxes/subsities to control activities with negative/positive externalities (e.g., pollution/basic research).

• Protecting Domestic Production/Facilitate Integration: Using import/export taxes to protect domestic industries and promote international trade, possibly facilitating tax agreements and integrating into larger markets by reducing or eliminating specific taxes.

Section V: Classification of Taxes

• Direct vs. Indirect Taxes:
  • Direct taxes are borne by the person on whom they're imposed (e.g., income tax, wealth tax) ; their burden cannot be passed on.
  • Indirect taxes are imposed on one person but paid by another (e.g., sales tax), often shifting the burden to consumers.
• Proportional, Progressive, Regressive, and Digressive Taxes:
  • Proportional: Same tax rate for everyone, regardless of income.
  • Progressive: Higher tax rates for higher earners, income tax system.
  • Regressive: Lower tax rate for higher earners.
• Single vs. Multiple Taxes:
  • Single taxes are based on one item or one class of people, with limitations in modern economies.
  • Multiple taxes involve diverse taxes to better address various economic objectives.
• Distributive vs. Pro-Rata Taxes: These refer to different methods for distributing a fixed tax amount among taxpayers.
• Personal vs. Impersonal Taxes:
  • Impersonal taxes consider only the economic item, not the person.
  • Personal taxes consider individual circumstances in applying the tax rate.
• Specific vs. Ad Valorem Taxes:
  • Specific taxes are based on a fixed amount per unit of a commodity or goods.
  • Ad valorem taxes are based on the value of a commodity or goods.

Chapter Ⅲ: Commercial Revenues

• Commercial revenue, essentially earned revenue from production and sales.
• Derived from the prices charged for goods/services by public enterprises.
• Examples: railways, postal services, public utilities.
• Distinguishing factors between taxes and prices.
• Prices are equated with cost-benefit considerations for service provision in public sector activities (e.g., social welfare oriented prices).

Chapter Ⅳ: Administrative Revenues

• Administrative revenues refer to fees imposed for access to specific government services (e.g., court fees), and include other sources like penalties, control on properties etc.
• No guarantee of a relationship between payment amount and the benefit provided.

Chapter Ⅰ: Meaning and Definition of Public Debt

• The public sector deficit arises when public expenditure is more than revenue; public debt is a way to close this gap.
• Public debt is borrowing by government, with an obligation to repay the principal amount and interest.
• Public debt is different from other public revenues because it has to be repaid with interest.
• Debt takes the form of bonds (long-term) or treasury bills (short-term).
• Borrowing can be from various sources (individuals, firms, banks, etc.).

Chapter Ⅰ: Meaning of Public Budget

• A public budget is an annual financial statement forecasting and authorizing public revenues and expenditures.
• The budget embodies government policy for a period (usually a year).

Essential Elements of Public Budget

• Prepared on cash basis, not ledger basis, with government getting income and making expenditure in cash.
• Based on gross, not net calculations, avoiding deducting charges from receipts to maintain legislative control.
• Annual preparation with no carryover of unsent funds to the next year.
• Inclusions of all government revenues and expenditures, in a uniform format, avoiding extraordinary budgets for ordinary costs.

Chapter Ⅱ: Objectives of Public Budget

• Reallocation of Resources: Directing resources to public goods and services (where needed), possibly addressing market failures.
• Redistributing Income: Reducing inequality through progressive taxation and subsidies/benefits for disadvantaged segments of the population.
• Encouraging Economic Development: Using budget to stimulate economic activities, potentially by grant tax rebates and establishing infrastructure/public enterprises.
• Economic Stability: Using budgetary policies to mitigate economic crises and control economic fluctuations (boom/recession).
• Accountability: Providing a tool for examining government expenditure; accountability of executive by requiring Parliamentary approval of programs.
• Generating Employment: Promoting labor-absorbing technologies, public works, and employment-focused projects.
• Reducing Poverty/Unemployment: Creating employment opportunities and providing benefits for the poor.

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