What are the principles of a good tax system?

A good tax system should meet five basic conditions: fairness, adequacy, simplicity, transparency, and administrative ease.Click to see full answer. Besides, what are the principles of a good tax?In The Wealth of Nations (1776), Adam Smith argued that taxation should follow the four principles of fairness, certainty, convenience and efficiency. Fairness, in that taxation should be compatible with taxpayers’ conditions, including their ability to pay in line with personal and family needs.Similarly, what are the canons of a good tax system? Adam Smith’s Four “Canons” Certainty: “The tax which each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, the quantity to be paid, ought all to be clear and plain to the contributor, and to every other person.” Consequently, what are the four principles of sound taxation? The principles of a sound tax system are fiscal adequacy, administrative feasibility, and theoretical justice. Fiscal adequacy means the sources of revenue must be sufficient to meet government expenditures and other public needs.What are the 3 criteria for effective taxes?Identifying Central Issues Identify and explain three criteria for an effective tax system. The three criteria’s for an effective tax system are equity, simplicity, and efficiency. Equity is that taxes should be impartial and just. There is no overriding guide to make taxes completely equitable.