In: Finance
Bobby works as a salaried HR recruiter for H-Corp in downtown Boston. He has a 401(k) and a small investment account that gives him $10K in interest and dividends. He lives in Chestnut Hill and pays real estate taxes. He sends his kids to public school and takes the T to work every day. He studied at BU. You meet with him and he starts complaining about the high real estate taxes and state taxes in the State. Which Canon of Taxation would help you educate and assuage his complaint?
The correct answer is one of the following:
a. Equity
b. Neutrality
c. Economy
d. Certainty
e. Convenience
Justify your choice.
Answer : Correct Option is (a.) Equity.
Reason :
According to Equity principle of Canon of Equity , the taxes are being levied according to the ability and the income earned.Therefore If the income of the person is high he will be levied high taxes . Therefore as the real este income is higher than normal income ,Therefore higher taxes are being levied.So his problem can be solved by educating him abount the Equity in Taxartion system.