Some financial specialists claim that the taxpayer can also free himself, in whole or in part, from the tax by increasing his production. This is the theory of the removal or rejection of the tax, which however is completely erroneous, because if the taxpayer must, due to the tax, produce a greater quantity of economic goods in order not to suffer a material loss of assets, it is worth the to say that the tax is paid in full, if it is considered that this increase in production, which on the other hand can occur only rarely.
Why Is it So?
That is because it is hindered by psychic, physical and economic laws, does not remain with the taxpayer, and which he therefore uses unproductively, in relation to itself, the labor and capital necessary to produce the above-mentioned increase. This increase in work and savings, that is, this greater sacrifice constitutes precisely the percussion which over him exercises the tax. The tax removal theory is therefore a mere illusion.
The Right Tax Options for You
The incidence or the translation of taxes occurs in cases where the taxpayer pays tribute imposed on (the time at which the right taxpayer pays the tax is said percussion tax); if the beaten taxpayer fails to transfer the burden of the tax to any other person, the incidence of the tax is carried out, that is the subtraction that the tax operates on the assets of those who bear the burden definitively. There the use of the tax calculator comes handy.
- If the taxpayer by right instead manages to transfer or pass the tax on to other persons, there is a translation or repercussion of the tax, that process by which the taxpayer compensates himself, in whole or in part, of the taxes and duties by which he is affected, transferring the burden to others, who, in turn, are free of them in whole or in part.
The New Phenomena
It was found that the phenomena of translation are strictly subordinate to those of value, and that there is no tax translation that is not caused by a change in value. In other words, in order for the transfer to take place, it is necessary that the reason for the exchange of the taxed good has changed, not for reasons extrinsic to the tax, but and solely by virtue of the modifications brought about by the tax itself on the market.
And indeed if the relationship between the demand and supply of the affected good does not change, that is, if its price does not change, there is, and cannot be, a transfer of tax. And since value is governed by different laws according to whether it is goods produced under conditions of competition or monopoly, so with the variation of the law of value, those governing the translation of taxes also vary.