Desirable Characteristics of Taxes*

• Universality - difficult to evade, promotes voluntary compliance

• Administrative Simplicity - easily collectable

• Transparency - easily discernible tax burdens

• Clarity - easy to understand

• Fairness - Individuals who are the same in all relevant aspects should be treated equally

• Not Harmful to Economy

• Elasticity -- tax rates should adjust quickly to base of tax such that desirable revenues will be produced

• Based on Principles - Not arbitrary or capricious

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*See also Canons of Taxation