ABSTRACT
This chapter analyzes taxation and regulation deferring the study of monetary, fiscal and international matters. The world of taxation includes three key components: tax targeting, tax collecting and tax paying. Tax targeting relates to the economic activities/variables which the tax authorities consider as their goal: specific firms or industries, certain categories of consumption, or some groups of individuals. By contrast, tax collection refers to how tax revenues are gathered. The tax burden relates to those who actually pay the tax. The chapter includes government intervention regulation, which is generally considered the suitable response to situations in which spontaneous economic interaction among economic agents is undesirable. Governments play a substantial role in today's economies. They try to stabilise the business cycle through monetary and fiscal policies, to intervene in regulating international trade and financial transactions, and to redistribute income to the benefit of the poor members of the community.
