Personal income tax

In practice views on taxes have historically been formed under the influence of objective and subjective factors. The analysis of the definitions given to taxes is necessary first of all to justify their economic and social nature to define the economic role of taxes and tax principles that are the basis of tax legislation and to determine the place of personal income tax in the tax system. Because with the emergence of the state taxes were considered one of the necessary requirements of economic relations in society.The classical principles of the tax system are the basis of the tax system of almost all countries. These are the principles of fairness accuracy convenience and economy.The first principle is the principle of equity which means that the income of all individuals should be taxed and distributed equally. Although A. Smith understood justice as taxation of citizens' income on the basis of commonality and proportionality he considered that rich people should be taxed in a progressive way.