In contemporary finance, in which the income deriving from the assets of the state is of relatively little importance, taxes and fees (especially the former) represent the main, ordinary and normal sources of the revenues of the state and minor public entities.
It is true that sometimes the state, in order to meet extraordinary expenses, makes very considerable use of public debt and the issuance of paper money, but in the first case the state must then again rely on taxes and fees to pay the interest due to its creditors; in the second case, the procedure results in a reduction in income, i.e. a tax, to be paid by certain classes of the population (holders of public debt securities, deposits with banks and creditors in general),while other classes (industrialists, merchants and debtors in general) derive particular profits from this paper circulation. Using the income tax calculator is a good option for submitting the same.
Taxes are distinguished:
- According to the form in which they are met, taxes in kind and in currency. The former belong to an outdated historical period; the latter, on the other hand, are more advanced and have long since replaced the taxes in kind in all civilized states;
- According to their nature: direct taxes and indirect taxes. With a distinction that dates back to Hoffmann (1840) and which was then introduced in Italy by L. Cossa and G. Alessio, let’s say direct those taxes that affect an immediate manifestation of the taxpayer’s wealth, such as the product, income and assets indirect those that affect a mediated manifestation of wealth, as this manifestation is an index (more or less exact) of the taxpayer’s economic capacity, such as transfers and consumption of wealth;
- According to their object: the tax is real when it affects the wealth without taking into account the personal conditions of its owner (taxes on consumption and transfers, taxes on land, buildings, etc.). It is personal instead when it affects the wealth taking into account the personal conditions of its owner, p. ex. interest expense, the number of members of the taxpayer’s family, celibacy, etc.
According to the method of collection:
There is a quota or distribution tax when, having previously established the total product of a tax, this is divided among the various compartments, provinces, municipalities and taxpayers in a predetermined measure (tax on land in the provinces where the new cadaster has not yet been implemented), so that the tax is burdensome in the years of low productivity and light in the more fortunate ones instead there is the quotation tax when only the rate that the citizen must pay is previously fixed, so that the revenue from the tax follows the events of the income, without public bodies being able to rely on a pre-established product (taxes on land, in the provinces where it is implemented the new land register, on buildings and movable wealth).