Culture is the social behavior and norms found in human societies. Culture is considered a central concept in anthropology, encompassing the range of phenomena that are transmitted through social learning in human societies. Cultural universals are found in all human societies; the concept of material culture covers the physical expressions of culture, such as technology and art, whereas the immaterial aspects of culture such as principles of social organization, philosophy and science comprise the intangible cultural heritage of a society. In the humanities, one sense of culture as an attribute of the individual has been the degree to which they have cultivated a particular level of sophistication in the arts, education, or manners; the level of cultural sophistication has sometimes been seen to distinguish civilizations from less complex societies. Such hierarchical perspectives on culture are found in class-based distinctions between a high culture of the social elite and a low culture, popular culture, or folk culture of the lower classes, distinguished by the stratified access to cultural capital.
In common parlance, culture is used to refer to the symbolic markers used by ethnic groups to distinguish themselves visibly from each other such as body modification, clothing or jewelry. Mass culture refers to the mass-produced and mass mediated forms of consumer culture that emerged in the 20th century; some schools of philosophy, such as Marxism and critical theory, have argued that culture is used politically as a tool of the elites to manipulate the lower classes and create a false consciousness, such perspectives are common in the discipline of cultural studies. In the wider social sciences, the theoretical perspective of cultural materialism holds that human symbolic culture arises from the material conditions of human life, as humans create the conditions for physical survival, that the basis of culture is found in evolved biological dispositions; when used as a count noun, a "culture" is the set of customs and values of a society or community, such as an ethnic group or nation. Culture is the set of knowledge acquired over time.
In this sense, multiculturalism values the peaceful coexistence and mutual respect between different cultures inhabiting the same planet. Sometimes "culture" is used to describe specific practices within a subgroup of a society, a subculture, or a counterculture. Within cultural anthropology, the ideology and analytical stance of cultural relativism holds that cultures cannot be objectively ranked or evaluated because any evaluation is situated within the value system of a given culture; the modern term "culture" is based on a term used by the Ancient Roman orator Cicero in his Tusculanae Disputationes, where he wrote of a cultivation of the soul or "cultura animi," using an agricultural metaphor for the development of a philosophical soul, understood teleologically as the highest possible ideal for human development. Samuel Pufendorf took over this metaphor in a modern context, meaning something similar, but no longer assuming that philosophy was man's natural perfection, his use, that of many writers after him, "refers to all the ways in which human beings overcome their original barbarism, through artifice, become human."In 1986, philosopher Edward S.
Casey wrote, "The word culture meant'place tilled' in Middle English, the same word goes back to Latin colere,'to inhabit, care for, worship' and cultus,'A cult a religious one.' To be cultural, to have a culture, is to inhabit a place sufficiently intensive to cultivate it—to be responsible for it, to respond to it, to attend to it caringly." Culture described by Richard Velkley:... meant the cultivation of the soul or mind, acquires most of its modern meaning in the writings of the 18th-century German thinkers, who were on various levels developing Rousseau's criticism of "modern liberalism and Enlightenment". Thus a contrast between "culture" and "civilization" is implied in these authors when not expressed as such. In the words of anthropologist E. B. Tylor, it is "that complex whole which includes knowledge, art, law and any other capabilities and habits acquired by man as a member of society." Alternatively, in a contemporary variant, "Culture is defined as a social domain that emphasizes the practices and material expressions, over time, express the continuities and discontinuities of social meaning of a life held in common.
The Cambridge English Dictionary states that culture is "the way of life the general customs and beliefs, of a particular group of people at a particular time." Terror management theory posits that culture is a series of activities and worldviews that provide humans with the basis for perceiving themselves as "person of worth within the world of meaning"—raising themselves above the physical aspects of existence, in order to deny the animal insignificance and death that Homo sapiens became aware of when they acquired a larger brain. The word is used in a general sense as the evolved ability to categorize and represent experiences with symbols and to act imaginatively and creatively; this ability arose with the evolution of behavioral modernity in humans around 50,000 years ago, is thought to be unique to humans, although some other species have demonstrated similar, though much less complex, abilities for social learning. It is used to denote the co
Act of Congress
An Act of Congress is a statute enacted by the United States Congress. It can either be a Public Law, relating to the general public, or a Private Law, relating to specific institutions or individuals; the term can be used in other countries with a legislature named "Congress", such as the Congress of the Philippines. In the United States, Acts of Congress are designated as either public laws, relating to the general public, or private laws, relating to specific institutions or individuals. Since 1957, all Acts of Congress have been designated as "Public Law X-Y" or "Private Law X-Y", where X is the number of the Congress and Y refers to the sequential order of the bill. For example, P. L. 111-5 was the fifth enacted public law of the 111th United States Congress. Public laws are often abbreviated as Pub. L. No. X-Y; when the legislation of those two kinds is proposed, it is called public bill and private bill respectively. The word "act", as used in the term "Act of Congress", is a common, not a proper noun.
The capitalization of the word "act" is deprecated by some dictionaries and usage authorities. Some writers, in particular the U. S. Code, capitalize "Act"; this is a result of the more liberal use of capital letters in legal contexts, which has its roots in the 18th century capitalization of all nouns as is seen in the United States Constitution. "Act of Congress" is sometimes used in informal speech to indicate something for which getting permission is burdensome. For example, "It takes an Act of Congress to get a building permit in this town." An Act adopted by simple majorities in both houses of Congress is promulgated, or given the force of law, in one of the following ways: Signature by the President of the United States, Inaction by the President after ten days from reception while the Congress is in session, or Reconsideration by the Congress after a presidential veto during its session. The President promulgates Acts of Congress made by the first two methods. If an Act is made by the third method, the presiding officer of the house that last reconsidered the act promulgates it.
Under the United States Constitution, if the President does not return a bill or resolution to Congress with objections before the time limit expires the bill automatically becomes an Act. In addition, if the President rejects a bill or resolution while the Congress is in session, a two-thirds vote of both houses of the Congress is needed for reconsideration to be successful. Promulgation in the sense of publishing and proclaiming the law is accomplished by the President, or the relevant presiding officer in the case of an overridden veto, delivering the act to the Archivist of the United States. After the Archivist receives the Act, he or she provides for its publication as a slip law and in the United States Statutes at Large. Thereafter, the changes are published in the United States Code. An Act of Congress that violates the Constitution may be declared unconstitutional by the courts; the judicial declaration of an Act's unconstitutionality does not remove the law from the statute books.
However, future publications of the Act are annotated with warnings indicating that the statute is no longer valid law. Legislation List of United States federal legislation for a list of prominent acts of Congress. Procedures of the United States Congress Act of Parliament Coming into force Enactment Federal Register http://bensguide.gpo.gov/6-8/glossary.html
Spain the Kingdom of Spain, is a country located in Europe. Its continental European territory is situated on the Iberian Peninsula, its territory includes two archipelagoes: the Canary Islands off the coast of Africa, the Balearic Islands in the Mediterranean Sea. The African enclaves of Ceuta, Peñón de Vélez de la Gomera make Spain the only European country to have a physical border with an African country. Several small islands in the Alboran Sea are part of Spanish territory; the country's mainland is bordered to the south and east by the Mediterranean Sea except for a small land boundary with Gibraltar. With an area of 505,990 km2, Spain is the largest country in Southern Europe, the second largest country in Western Europe and the European Union, the fourth largest country in the European continent. By population, Spain is the fifth in the European Union. Spain's capital and largest city is Madrid. Modern humans first arrived in the Iberian Peninsula around 35,000 years ago. Iberian cultures along with ancient Phoenician, Greek and Carthaginian settlements developed on the peninsula until it came under Roman rule around 200 BCE, after which the region was named Hispania, based on the earlier Phoenician name Spn or Spania.
At the end of the Western Roman Empire the Germanic tribal confederations migrated from Central Europe, invaded the Iberian peninsula and established independent realms in its western provinces, including the Suebi and Vandals. The Visigoths would forcibly integrate all remaining independent territories in the peninsula, including Byzantine provinces, into the Kingdom of Toledo, which more or less unified politically and all the former Roman provinces or successor kingdoms of what was documented as Hispania. In the early eighth century the Visigothic Kingdom fell to the Moors of the Umayyad Islamic Caliphate, who arrived to rule most of the peninsula in the year 726, leaving only a handful of small Christian realms in the north and lasting up to seven centuries in the Kingdom of Granada; this led to many wars during a long reconquering period across the Iberian Peninsula, which led to the creation of the Kingdom of Leon, Kingdom of Castile, Kingdom of Aragon and Kingdom of Navarre as the main Christian kingdoms to face the invasion.
Following the Moorish conquest, Europeans began a gradual process of retaking the region known as the Reconquista, which by the late 15th century culminated in the emergence of Spain as a unified country under the Catholic Monarchs. Until Aragon had been an independent kingdom, which had expanded toward the eastern Mediterranean, incorporating Sicily and Naples, had competed with Genoa and Venice. In the early modern period, Spain became the world's first global empire and the most powerful country in the world, leaving a large cultural and linguistic legacy that includes more than 570 million Hispanophones, making Spanish the world's second-most spoken native language, after Mandarin Chinese. During the Golden Age there were many advancements in the arts, with world-famous painters such as Diego Velázquez; the most famous Spanish literary work, Don Quixote, was published during the Golden Age. Spain hosts the world's third-largest number of UNESCO World Heritage Sites. Spain is a secular parliamentary democracy and a parliamentary monarchy, with King Felipe VI as head of state.
It is a major developed country and a high income country, with the world's fourteenth largest economy by nominal GDP and sixteenth largest by purchasing power parity. It is a member of the United Nations, the European Union, the Eurozone, the Council of Europe, the Organization of Ibero-American States, the Union for the Mediterranean, the North Atlantic Treaty Organization, the Organisation for Economic Co-operation and Development, Organization for Security and Co-operation in Europe, the Schengen Area, the World Trade Organization and many other international organisations. While not an official member, Spain has a "Permanent Invitation" to the G20 summits, participating in every summit, which makes Spain a de facto member of the group; the origins of the Roman name Hispania, from which the modern name España was derived, are uncertain due to inadequate evidence, although it is documented that the Phoenicians and Carthaginians referred to the region as Spania, therefore the most accepted etymology is a Semitic-Phoenician one.
Down the centuries there have been a number of accounts and hypotheses: The Renaissance scholar Antonio de Nebrija proposed that the word Hispania evolved from the Iberian word Hispalis, meaning "city of the western world". Jesús Luis Cunchillos argues that the root of the term span is the Phoenician word spy, meaning "to forge metals". Therefore, i-spn-ya would mean "the land where metals are forged", it may be a derivation of the Phoenician I-Shpania, meaning "island of rabbits", "land of rabbits" or "edge", a reference to Spain's location at the end of the Mediterranean. The word in question means "Hyrax" due to Phoenicians confusing the two animals. Hispania may derive from the poetic use of the term Hesperia, reflecting the Greek perception of Italy as a "western land" or "land of the setting sun" (Hesperia
Employment is a relationship between two parties based on a contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or other entity is the employer and the other is the employee. Employees work in return for payment, which may be in the form of an hourly wage, by piecework or an annual salary, depending on the type of work an employee does or which sector she or he is working in. Employees in some fields or sectors may receive bonus payment or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits can include health insurance, disability insurance or use of a gym. Employment is governed by employment laws, regulations or legal contracts. An employee contributes labor and expertise to an endeavor of an employer or of a person conducting a business or undertaking and is hired to perform specific duties which are packaged into a job. In a corporate context, an employee is a person, hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.
Employer and managerial control within an organization rests at many levels and has important implications for staff and productivity alike, with control forming the fundamental link between desired outcomes and actual processes. Employers must balance interests such as decreasing wage constraints with a maximization of labor productivity in order to achieve a profitable and productive employment relationship; the main ways for employers to find workers and for people to find employers are via jobs listings in newspapers and online called job boards. Employers and job seekers often find each other via professional recruitment consultants which receive a commission from the employer to find and select suitable candidates. However, a study has shown that such consultants may not be reliable when they fail to use established principles in selecting employees. A more traditional approach is with a "Help Wanted" sign in the establishment. Evaluating different employees can be quite laborious but setting up different techniques to analyze their skill to measure their talents within the field can be best through assessments.
Employer and potential employee take the additional step of getting to know each other through the process of job interview. Training and development refers to the employer's effort to equip a newly hired employee with necessary skills to perform at the job, to help the employee grow within the organization. An appropriate level of training and development helps to improve employee's job satisfaction. There are many ways that employees are paid, including by hourly wages, by piecework, by yearly salary, or by gratuities. In sales jobs and real estate positions, the employee may be paid a commission, a percentage of the value of the goods or services that they have sold. In some fields and professions, employees may be eligible for a bonus; some executives and employees may be paid in stocks or stock options, a compensation approach that has the added benefit, from the company's point of view, of helping to align the interests of the compensated individual with the performance of the company.
Employee benefits are various non-wage compensation provided to employee in addition to their wages or salaries. The benefits can include: housing, group insurance, disability income protection, retirement benefits, tuition reimbursement, sick leave, social security, profit sharing, funding of education, other specialized benefits. In some cases, such as with workers employed in remote or isolated regions, the benefits may include meals. Employee benefits can improve the relationship between employee and employer and lowers staff turnover. Organizational justice is an employee's perception and judgement of employer's treatment in the context of fairness or justice; the resulting actions to influence the employee-employer relationship is a part of organizational justice. Employees can organize into trade or labor unions, which represent the work force to collectively bargain with the management of organizations about working, contractual conditions and services. Either an employee or employer may end the relationship at any time subject to a certain notice period.
This is referred to as at-will employment. The contract between the two parties specifies the responsibilities of each when ending the relationship and may include requirements such as notice periods, severance pay, security measures. In some professions, notably teaching, civil servants, university professors, some orchestra jobs, some employees may have tenure, which means that they cannot be dismissed at will. Another type of termination is a layoff. Wage labor is the socioeconomic relationship between a worker and an employer, where the worker sells their labor under a formal or informal employment contract; these transactions occur in a labor market where wages are market determined. In exchange for the wages paid, the work product becomes the undifferentiated property of the employer, except for special cases such as the vesting of intellectual property patents in the United States where patent rights are vested in the original personal inventor. A wage laborer is a person whose primary means of income is from the selling of his or her labor in this way.
In modern mixed economies such as that
Restraint of trade
Restraints of trade is a common law doctrine relating to the enforceability of contractual restrictions on freedom to conduct business. It is a precursor of modern competition law. In an old leading case of Mitchel v Reynolds Lord Smith LC said, it is the privilege of a trader in a free country, in all matters not contrary to law, to regulate his own mode of carrying it on according to his own discretion and choice. If the law has regulated or restrained his mode of doing this, the law must be obeyed, but no power short of the general law ought to restrain his free discretion. A contractual undertaking not to trade is void and unenforceable against the promisor as contrary to the public policy of promoting trade, unless the restraint of trade is reasonable to protect the interest of the purchaser of a business. Restraints of trade can appear in post-termination restrictive covenants in employment contracts. Restraint of trade in England and the UK was and is defined as a legal contract between a buyer and a seller of a business, or between an employer and employee, that prevents the seller or employee from engaging in a similar business within a specified geographical area and within a specified period.
It intends to protect trade secrets or proprietary information but is enforceable only if it is reasonable with reference to the party against whom it is made and if it is not contrary to public policy. The restraint of trade doctrine is based on the two concepts of prohibiting agreements that run counter to public policy, unless the reasonableness of an agreement could be shown. A restraint of trade is some kind of agreed provision, designed to restrain another's trade. For example, in Nordenfelt v Maxim, Nordenfelt Guns and Ammunition Co a Swedish arms inventor promised on sale of his business to an American gun maker that he "would not make guns or ammunition anywhere in the world, would not compete with Maxim in any way." To be a valid restraint of trade in the first place, both parties must have provided valuable consideration for their agreement to be enforceable. In Dyer's Case a dyer had given a bond not to exercise his trade in the same town as the plaintiff for six months but the plaintiff had promised nothing in return.
On hearing the plaintiff's attempt to enforce this restraint, Hull J exclaimed, "per Dieu, if the plaintiff were here, he should go to prison till he had paid a fine to the King." The common law evolved with changing business conditions. So in the early 17th century case of Rogers v Parry it was held that a promise by a joiner not to trade from his house for 21 years was enforceable against him since the time and place was certain, it was held that a man cannot bind himself to not use his trade generally. This was followed in Broad v Jolyffe and Mitchel v Reynolds where Lord Macclesfield asked, "What does it signify to a tradesman in London what another does in Newcastle?" In times of such slow communications and commerce around the country it seemed axiomatic that a general restraint served no legitimate purpose for one's business and ought to be void. But in 1880 in Roussillon v Roussillon Lord Justice Fry stated that a restraint unlimited in space need not be void, since the real question was whether it went further than necessary for the promisee's protection.
So in the Nordenfelt case Lord Macnaghten ruled that while one could validly promise to "not make guns or ammunition anywhere in the world" it was an unreasonable restraint to "not compete with Maxim in any way." This approach in England was confirmed by the House of Lords in Mason v The Provident Supply and Clothing Co. In the US, the first significant discussion occurred in the Sixth Circuit's opinion by Chief Judge William Howard Taft in United States v. Addyston Pipe & Steel Co. Judge Taft explained the Sherman Antitrust Act of 1890 as a statutory codification of the English common-law doctrine of restraint of trade, as explicated in such cases as Mitchel v Reynolds; the court distinguished between naked restraints of trade and those ancillary to the legitimate main purpose of a lawful contract and reasonably necessary to effectuation of that purpose. An example of the latter would be a non-competition clause associated with the lease or sale of a bakeshop, as in the Mitchel case; such a contract should be tested by a "rule of reason," meaning that it should be deemed legitimate if "necessary and ancillary."
An example of the naked type of restraint would be the price-fixing and bid-allocation agreements involved in the Addyston case. Taft said that "we do not think there is any question of reasonableness open to the courts to such a contract." The Supreme Court affirmed the judgment. During the following century, the Addyston Pipe opinion of Judge Taft has remained foundational in antitrust analysis; the 1911 decision of the Supreme Court in Standard Oil Company of New Jersey v. United States relied on Taft's rule-of-reason analysis. In that case, the Court concluded that a contract offended the Sherman Act only if the contract restrained trade "unduly"—that is, if the contract resulted in monopolistic consequences. A broader meaning, the Court suggested, would ban normal and usual contracts, would thus infringe liberty of contract; the Court therefore endorsed the rule of reason enunciated in Addyston Pipe, which in turn derived from Mitchel v Reynolds and the common law of restraints of trade.
In more recent cases, court continue to base their rulings on the Mitchel framework, but attention has turned to such issues as "necessary to do what?" and "how necessary compared to collateral damage?" For example if a restraint is necessary and ancillary, within the meaning of the Mitchel and Addyston Pipe cases, it may still be an unreasonable restraint of trade
Law is a system of rules that are created and enforced through social or governmental institutions to regulate behavior. It has been defined both as "the Science of Justice" and "the Art of Justice". Law is a system that regulates and ensures that individuals or a community adhere to the will of the state. State-enforced laws can be made by a collective legislature or by a single legislator, resulting in statutes, by the executive through decrees and regulations, or established by judges through precedent in common law jurisdictions. Private individuals can create binding contracts, including arbitration agreements that may elect to accept alternative arbitration to the normal court process; the formation of laws themselves may be influenced by a constitution, written or tacit, the rights encoded therein. The law shapes politics, economics and society in various ways and serves as a mediator of relations between people. A general distinction can be made between civil law jurisdictions, in which a legislature or other central body codifies and consolidates their laws, common law systems, where judge-made precedent is accepted as binding law.
Religious laws played a significant role in settling of secular matters, is still used in some religious communities. Islamic Sharia law is the world's most used religious law, is used as the primary legal system in some countries, such as Iran and Saudi Arabia; the adjudication of the law is divided into two main areas. Criminal law deals with conduct, considered harmful to social order and in which the guilty party may be imprisoned or fined. Civil law deals with the resolution of lawsuits between individuals and/or organizations. Law provides a source of scholarly inquiry into legal history, economic analysis and sociology. Law raises important and complex issues concerning equality and justice. Numerous definitions of law have been put forward over the centuries; the Third New International Dictionary from Merriam-Webster defines law as: "Law is a binding custom or practice of a community. The Dictionary of the History of Ideas published by Scribner's in 1973 defined the concept of law accordingly as: "A legal system is the most explicit, institutionalized, complex mode of regulating human conduct.
At the same time, it plays only one part in the congeries of rules which influence behavior, for social and moral rules of a less institutionalized kind are of great importance." There have been several attempts to produce "a universally acceptable definition of law". In 1972, one source indicated. McCoubrey and White said that the question "what is law?" has no simple answer. Glanville Williams said that the meaning of the word "law" depends on the context in which that word is used, he said that, for example, "early customary law" and "municipal law" were contexts where the word "law" had two different and irreconcilable meanings. Thurman Arnold said that it is obvious that it is impossible to define the word "law" and that it is equally obvious that the struggle to define that word should not be abandoned, it is possible to take the view that there is no need to define the word "law". The history of law links to the development of civilization. Ancient Egyptian law, dating as far back as 3000 BC, contained a civil code, broken into twelve books.
It was based on the concept of Ma'at, characterised by tradition, rhetorical speech, social equality and impartiality. By the 22nd century BC, the ancient Sumerian ruler Ur-Nammu had formulated the first law code, which consisted of casuistic statements. Around 1760 BC, King Hammurabi further developed Babylonian law, by codifying and inscribing it in stone. Hammurabi placed several copies of his law code throughout the kingdom of Babylon as stelae, for the entire public to see; the most intact copy of these stelae was discovered in the 19th century by British Assyriologists, has since been transliterated and translated into various languages, including English, Italian and French. The Old Testament dates back to 1280 BC and takes the form of moral imperatives as recommendations for a good society; the small Greek city-state, ancient Athens, from about the 8th century BC was the first society to be based on broad inclusion of its citizenry, excluding women and the slave class. However, Athens had no legal science or single word for "law", relying instead on the three-way distinction between divine law, human decree and custom.
Yet Ancient Greek law contained major constitutional innovations in the development of democracy. Roman law was influenced by Greek philosophy, but its detailed rules were developed by professional jurists and were sophisticated. Over the centuries between the rise and decline of the Roman Empire, law was adapted to cope with the changing social situations and underwent major codification under Theodosius II and Justinian I. Although codes were replaced by custom and case law during the Dark Ages, Roman law was rediscovered around the 11th century when medieval legal scholars began to research Roman codes and adapt their concepts. Latin legal maxims were compiled for guidance. In medieval England, royal
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, along with resistance to taxation, is punishable by law. Taxes may be paid in money or as its labour equivalent. Most countries have a tax system in place to pay for public, common or agreed national needs and government functions; some levy a flat percentage rate of taxation on personal annual income, but most scale taxes based on annual income amounts. Most countries charge a tax both on corporate income and dividends. Countries or subunits also impose wealth taxes, property taxes, sales taxes, value-added taxes, payroll taxes or tarrifs; the legal definition, the economic definition of taxes differ in some ways such as economists do not regard many transfers to governments as taxes. For example, some transfers to the public sector are comparable to prices. Examples include, tuition at public universities, fees for utilities provided by local governments.
Governments obtain resources by "creating" money and coins, through voluntary gifts, by imposing penalties, by borrowing, by confiscating wealth. From the view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector, levied on a basis of predetermined criteria and without reference to specific benefit received. In modern taxation systems, governments levy taxes in money; the method of taxation and the government expenditure of taxes raised is highly debated in politics and economics. Tax collection is performed by a government agency such as the Ghana Revenue Authority, Canada Revenue Agency, the Internal Revenue Service in the United States, Her Majesty's Revenue and Customs in the United Kingdom or Federal Tax Service in Russia; when taxes are not paid, the state may impose civil penalties or criminal penalties on the non-paying entity or individual. The levying of taxes aims to raise revenue to fund governing or to alter prices in order to affect demand.
States and their functional equivalents throughout history have used money provided by taxation to carry out many functions. Some of these include expenditures on economic infrastructure, scientific research and the arts, public works, data collection and dissemination, public insurance, the operation of government itself. A government's ability to raise taxes is called its fiscal capacity; when expenditures exceed tax revenue, a government accumulates debt. A portion of taxes may be used to service past debts. Governments use taxes to fund welfare and public services; these services can include education systems, pensions for the elderly, unemployment benefits, public transportation. Energy and waste management systems are common public utilities. According to the proponents of the chartalist theory of money creation, taxes are not needed for government revenue, as long as the government in question is able to issue fiat money. According to this view, the purpose of taxation is to maintain the stability of the currency, express public policy regarding the distribution of wealth, subsidizing certain industries or population groups or isolating the costs of certain benefits, such as highways or social security.
Effects can be divided in two fundamental categories: Taxes cause an income effect because they reduce purchasing power to taxpayers. Taxes cause a substitution effect when taxation causes a substitution between taxed goods and untaxed goods. If we consider, for instance, two normal goods, x and y, whose prices are px and py and an individual budget constraint given by the equation xpx + ypy = Y, where Y is the income, the slope of the budget constraint, in a graph where is represented good x on the vertical axis and good y on the horizontal axes, is equal to -py/px; the initial equilibrium is in the point, in which budget constraint and indifference curve are tangent, introducing an ad valorem tax on the y good, the budget constraint's slope becomes equal to -py/px. The new equilibrium is now in the tangent point with a lower indifferent curve; as can be noticed the tax's introduction causes two consequences: It changes the consumers' real income It raises the relative price of y good. The income effect shows the variation of y good quantity given by the change of real income.
The substitution effect shows the variation of y good determined by relative prices' variation. This kind of taxation can be considered distortionary. Another example can be the Introduction of an income lump-sum tax, with a parallel shift downward of the budget constraint, can be produced a higher revenue with the same loss of consumers' utility compared with the property tax case, from another point of view, the same revenue can be produced with a lower utility sacrifice; the lower utility or the lower revenue given by a distortionary tax are called excess pressure. The same result, reached with an income lump-sum tax, can be obtained with these following types of taxes (all of them cause only a budget constraint's shift without causi