the principle of equity。
The principle of tax equity refers to the government's tax revenue to make different taxpayers bear the burden of the economic situation and the economic situation, and to maintain the balance between the various taxpayers. The principle of tax equity has two meanings of horizontal and vertical equity.
Horizontal fairness, the same economic conditions of taxpayers bear the same amount of tax. Vertical equity, that is, different tax payers to assume different tax, tax ability to pay more tax, the weak ability to pay taxes, tax free ability.
The basic function of the tax is to raise revenue. To provide a stable source of income for the financial needs of the state is the basic principle of establishing the tax system.
In order to ensure the financial resources needed by the government to provide public goods and services, the tax should be stable and relatively flexible, and can be increased with the development of the national economy.