Income And Wealth Taxation Economics Essay – Equality is a very important aspect of the rule of law. It is a right to every person and has implications in many aspects in life including taxation.  The principle of equality has improved over time in the Netherlands, and it is enshrined in the constitution with the main aim being to treat all circumstances and individuals equally. The tax system should be seen to foster equality.

It is important for the tax system to support equality in the taxation of individuals. The tax system ought to consider equality in the taxation of both individual labor and wealth income. The taxes that are levied on both labor and wealth should show equality, and no side should suffer. The principle of equality requires that all people be treated the same way and this should be reflected in the tax legislation. Same circumstances require same treatment under the principle of equality.

A tax is not a donation or a voluntary payment by an individual but an imposed financial charge or contribution. Therefore, under this circumstance, the principle of equality is very important. The principle is often enshrined in the constitution. For the case of the income taxes, all people are supposed to be charged a ‘fair amount’ as defined by the tax legislation and tax laws in the particular country.

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