Utility or Ability to Pay? Scholastic Tax Theory as an Analytical Synthesis and its Implications for Islamic Economics

Document Type : Research Paper

Authors
mohammadhosein Bahmanpour-khalesi 1
Mohammadjavad Sharifzadeh 2
1 Researcher and Phd Student, Economic Sciences, Faculty of Islamic Studies and Economics, Imam Sadiq University, Tehran, Iran.
2 Associate Professor of Economics, Imam Sadiq (pbuh) University, Tehran,.
10.30497/ies.2023.243294.2124
Abstract
So far, different interpretations of scholastic tax theory have been made. Some of them emphasized the adoption of utility approach and others emphasized the adoption of the ability to pay approach by scholastic thinkers. However, it seems that none of these interpretations have been able to address the scholastic tax theory in a comprehensive assessment by examining all angles of the theory. Accordingly, this study seeks to resolve the apparent conflicts by re-evaluating the scholastic tax theory and presenting a new interpretation of this theory. Our findings reveals that the main root of conflict goes back to the understanding of the society as an analytical unit of tax theory. As a result, the scholastic tax theory can be evaluated as an analytical synthesis between the classical approaches of taxation. Accordingly, taxation in a utilitarian attitude is an implicit contract between society and the government, and as long as governments pay attention to the common goods, society will be obliged to finance the government. But the share of each member of the community in this public payment is not the same. In this regard the ability to pay approach determines the share of each member of society.
Keywords
Tax
Ability to Pay
Utility
Scholastic economics
Islamic Economics
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