The author examines from a Marxist perspective the criteria of equity, efficiency and simplicity commonly used to critique taxation systems. Contradictions arising from the use of these ideals are discussed by reference to the Australian tax system. By contrast with capitalist ideology, the author concludes that an ideal tax system should be revolutionary, empathic and democratic.
Introduction Looking at the income tax system is a social process.
Further, the ITAA plays an immense part in distributing society's resources, and thus it is a thoroughly social institution. However, the concepts of equity, efficiency and simplicity do not provide the theoretical bases for doing so. Despite its 'social justice' connotations, it need not be a very radical notion. On first glance, the concept of 'horizontal equity' accords with 'general' concepts of fairness and, perhaps, social justice. This rough sketch reveals some problems with 'equity'.