Efficiency and fairness, is it possible to achieve? A review from Taxation aspect.

Economic

Efficiency and fairness are expectations of every tax policy maker. In case of individual, a millionaire should not pay a “fair” flat amount as a low-income person, so the different payment rate by level of income (progressive income tax) may enhance the satisfaction of most taxpayer, which is helpful to political and social concern, but againts the “fair” willing of some particular one. Meanwhile, the business sector, depend on their characteristics, some specific businesses or products have been taxed higher or lower, give them particular advantage or disadvantage in the market when comparing to other businesses. These issues sounds to be unequal for someone but fair to the others, it is just the matter of political and social purpose. Even there is conflict remains in real application, sometime we have to sacrifice one aspect to enhance the other. However, a balance between the two in the concern with tax objective is undeniable. To answer the question of equibrium point, Horizontal and Vertical equity aspect can not be ignored for designing a sound tax system. Seeking horizontal perpective is important because taxpayer should enjoy the feeling of treated equally. Meanwhile, it is same necessary to achieve the vertical equity so taxation will not become a burden to taxpayers, especially those are in lower income group, the majority group of population in society

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