Clarke tax theory

Clarke's tax theory advocates for a system where taxes are levied based on an individual's ability to pay, meaning those who have more resources contribute more. It emphasizes fairness by aligning tax burdens with personal income or wealth, ensuring that everyone contributes proportionally to their means. This approach aims to promote social equity and efficiency, reducing income inequality and funding public services without discouraging productivity or effort. In essence, Clarke's theory supports a progressive tax system that reflects taxpayers' financial capacity to support societal needs.