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Tax Rate and its Determinations: An Opinion from Ibn Khaldun

Author

Listed:
  • Ismail, Abdul Ghafar

    (The Islamic Research and Teaching Institute (IRTI))

  • Jaafar, Abu Bakar

    (Universiti Kebangsaan Malaysia)

Abstract

Tax is an alternative method for a country to obtain revenue for spending. But the issue arises when there are differences of opinion on the tax rate. Economists argue that to obtain higher tax revenue, it is necessary to lower the tax rate. In this paper, an analysis of tax rates is conducted by looking at the findings of Ibn Khaldun in his book Muqaddimah. This study also examines other hypotheses related to taxation. The findings show that the optimal rate of taxation can be determined.

Suggested Citation

  • Ismail, Abdul Ghafar & Jaafar, Abu Bakar, 2014. "Tax Rate and its Determinations: An Opinion from Ibn Khaldun," Working Papers 1435-1, The Islamic Research and Teaching Institute (IRTI).
    • Handle: RePEc:ris:irtiwp:1435_001
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    References listed on IDEAS

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    1. Christos P. Baloglou, 2012. "The Tradition of Economic Thought in the Mediterranean World from the Ancient Classical Times Through the Hellenistic Times Until the Byzantine Times and Arab-Islamic World," The European Heritage in Economics and the Social Sciences, in: Jürgen Georg Backhaus (ed.), Handbook of the History of Economic Thought, chapter 0, pages 7-91, Springer.
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    3. Yousef Elyasi & Mohammad Rahimi, 2012. "The Causality between Government Revenue and Government Expenditure in Iran," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 5(1), pages 129-145, April.
    4. Christian Richter & Dimitrios Paparas, 2013. "The Validity of Wagner's Law in Greece during the Last Two Centuries," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(4), pages 331-360.
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    More about this item

    Keywords

    optimal tax rate; tax revenue; Khaldunia; tax-spending hypothesis; fiscal decentralization;
    All these keywords.

    JEL classification:

    • B11 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Preclassical (Ancient, Medieval, Mercantilist, Physiocratic)
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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