Hypothecated tax

The hypothecation of a tax (also known as the ring fencing or ear marking of a tax) is the dedication of the revenue from a specific tax for a particular expenditure purpose.[1] Hypothecation is the pledging of assets.

Benefits

A 2010 report by the World Health Organization offered four arguments in support of hypothecated taxes for health:[2]

Criticism

A 2012 report by the Mercatus Center criticises dedicating tax revenues to specific expenditures on the basis that it can be used by policymakers to mask increases in total government spending.[3]

Examples

See also

References

  1. British House of Commons: Hypothecated taxation
  2. Hypothecation of tax revenue for health
  3. The Effects of Dedicating Tax Revenues
  4. "What we do". VicHealth. Retrieved 2014-02-11.

Further reading


This article is issued from Wikipedia - version of the Saturday, April 02, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.