Ability-to-Pay Principle Of Taxation And Its Legal Application

The ability-to-pay principle of taxation is a concept of Economics. As a principle of justice of taxation,it plays a good role in measuring the ability of taxpayer and at the beginning,its purpose is to distribute tax burden fairly.As the name suggests,the basic meaning of the principle is that every taxpayer bear tax burden according to their different ability which results in that a taxpayer who has stronger ability bears more tax while a weak one bears less. As the long developing process in academic area, from the "subjective" stage to "objective" stage,the specific content of the ability-to-pay principle of taxation becomes more scientific and feasible. Since then,law researchers began to do research on it and paid more attention to its value of law.Whether the principle of taxation can be regard as a legal principle to apply,law researchers haven't gotten consistent idea..But more people especially scholars of Japan and Taiwan have a positive attitude.As a means to achieve justice of taxation, the principle has theoretical and logic foundation on Economics,Jurisprudence and Constitution.That provides a scientific basis for its use in reality.The nature of the principle determines its value and function.To the value of legal system,it's a good manifestation of justice.To taxation,it can promote achieve horizontal and vertical equity.And for equitable distribution of tax burden,avoiding excessive taxation and cultivating awareness of taxation, it also plays a important role.As a perfect ideal,it is not a easy wok to realize ability-to-pay when the tax system and legal environment constraint it strongly.Therefore, in order to apply the principle,we need to analyze the limitations,problems and feasibility under the current system.At the same time,the ability-to-pay principle of taxation requires assurance of specific legal system.Whether on entity or procedure,relatively sound legal system adaptive to the principle can exert positive effect on distributing tax burden fairly,shortening the difference and lead tax legal system towards a more equitable future.