|1.||Taxes should be fair; distinctions in tax burden should be based on reasonable principles and should not be arbitrary. This is important both for its own sake and for the morale of the taxpayer. Progress in taxation consists largely of moving from opportunistic to rational revenue sources.|
|2.||Taxes should reduce inequalities in wealth, income, and power. Wide inequalities are abhorrent to democracy.|
|3.||Taxes should conserve the human resources that "man the works."|
|4.||Taxes should preserve a wide market; they should not aggravate oversaving.|
|5.||Taxes should preserve incentives. They should leave enough margin between the return to the ambitious, on the one hand, and the slothful, on the other, to make ambition definitely worth while; they should allow enough return to the successful risk-taker over that to the "safe" investor so that risk-taking is definitely worth while. Particularly those who innovate and take responsibilities should not be singled out for adverse treatment by the tax system.|
|6.||Taxes should be as direct as feasible; in general, taxpayers react most sensibly to what they see and understand.|
|7.||Direct taxes should be widely shared. Wide participation in government is desirable on both the voting and the financial sides. Expenditures voted by the many and paid for exclusively by the few are demoralizing, certainly for those who pay and probably for those who do not.|
|8.||Taxes should be adequate. We have had an unbalanced federal budget for 14 years.|
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Publication information: Book title: Postwar Taxation and Economic Progress. Contributors: Harold M. Groves - Author. Publisher: McGraw-Hill Book Co.. Place of publication: New York. Publication year: 1946. Page number: 373.
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