Taxation Principles and Theories Quiz

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Taxes are based on reciprocal duties between the State and its inhabitants (correct)
Taxes are necessary for a government to exist
Taxes should be collected arbitrarily to activate and operate the government
Taxes should be limited in scope and subject to restrictions

Taxes are essential for a government to function and exist.

Taxation is based on the mutual responsibilities between a government and its citizens; those who benefit more should pay more.

Taxation has a wide and unrestricted reach, allowing the government to impose taxes broadly.

The Lifeblood Theory of Taxation: a concept that suggests taxes are the lifeblood of a nation, as they provide the necessary revenue for government activities and expenditures.

The Benefits-Received Theory of Taxation: a theory that proposes that individuals should be taxed based on the benefits they receive from the government, such as infrastructure, education, and healthcare.

The scope of taxation includes the government's power to impose taxes on its citizens, covering various aspects of their economic lives, including income, consumption, and wealth.