I believe that the ultimate role and purpose of tax is to: 1. To provide revenue to finance necessary Government spending 2. Reduce the gap between the rich and poor through redistribution 3. Reduce consumption of demerit goods
To act as an instrument to achieve the economic aims of Government
To redistribute income on a socially acceptable basis

To provide revenue to finance necessary government spending:
This will include services for all the public and amongst other things this should include things like Transport, education, health, housing and benefits and environmental issues. The problem here however, is that some people may argue that they are paying for services that they do not use, for example some people would prefer to use a private medical clinic instead of a government one. The services in this area which are funded by tax payers need to mirror the needs of the majority of the population is order to be as fair as possible. The two main questions here are, what counts as necessary government spending and how much tax should people pay to contribute to this.

Reduce the gap between the rich and the poor through redistribution:
Progressive taxation can be used to reduce inequality in society. This helps certain individuals to never fall below a level of income that would deprive them of access to basic needs such as food, clothing, housing, education and health care.

Reduce consumption of demerit goods
Taxes can help to reduce the consumption of unhealthy products such as alcohol and tobacco, which will ultimately benefit society.

In order to achieve the tax aims an affective and fair tax system must be in place. Adam Smith was the first person to introduce a list of 4 ‘canons’ which relate to the rate, amount, method of levy and collection of tax. These are all important issues that need to be dealt with before an