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Sales taxes are known to be a form of regressive taxation (whereas income taxes are considered progressive). Regressive usually refers to impacting lower incomes more, while progressive taxes impact higher incomes more.
In simple math, low income persons have less disposable money available for purchases of any sort (whether necessities or otherwise). A greater portion of a low income person's income gets directed to basic necessities by default. The staples that one needs to just get by in the world for example do not have any impact on a high income person in terms of cost in relation to their income level. Thus if you place a consistent sales tax on goods across the board, it's going to be felt more severely by lower income individuals. For example, a 6% tax on milk, bread, heating oil, gasoline, clothing, or numerous other goods considered a necessity, is going to be felt significantly by somebody earning $15,000 per year (and barely noticed by somebody earning $250,000 per year); it's ultimately due to the difference in disposable incomes between low income and high income persons. Income taxes are hyper progressive in most of the industrialized world with the intention to balance such differences out. For example in the United States, the bottom 40% of income earners pay on average zero federal income tax (and the top 1.3 million income earners, pay as much in federal taxation as the bottom 130 million earners).
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What is a graduated income tax?
Like the one i the US where there are brackets of percentages of tax, that get larger as the income gets larger. A low earner pay a low percent, a higher earner a higher percent.
I'm a retired and my ssa income is low, Do I need to file?
Does low income retiree need to file income tax?
How do the indirect taxes affect the private business?
Indirect taxes causes an increase in prices... But, first we would see the price elasticity of the product, that the business sells. If the price elasticity is high, then, the increase in prices would result in less sales. resulting in low profits. On the other hand, if the price elasticity is low, it would not affect the business much. This is because the product would be in demand and people would be buying it because it costs a small proportion of the income or it is a basic necessity, for example: Bread. For this business, there would be a very small change in sales revenue and hence, profits.
What is low margin business?
The profit is small. The expenses are slightly less than the gross income. Restaurants and grocery stores work on a small margin, but make up for it with a large sales volume.
Are most income taxes considered progressive or regressive?
It depends on how the tax is structured. For example many many consider sales or gasoline taxes as regressive, because for low income groups -- it takes a higher percentage of their income to pay it. In the USA our income tax system is progressive, if you make more -- you pay a higher higher tax rate. (%). Please note, this is a simple answer to a complex question.
How income as an economic factor affect business?
Income as a direct affect on business. the purchasing power of an individual depends upon his/her disposable income (income-taxes). when income is more they will purchase more and vice verse. So when the aggregate income of the people will fall, the demand for the products and services will decrease which will in turn result in low sales as well as profit of a business.
What is figured in as income for low income housing?
How much can a person in Kansas make and still be considered low income.
In what way the income of the consumer affect his buying behavior?
if consumers are receiving a low income then
How does competitiors low prices affect your sales?
Obviously it will decrease your sales if their prices are below yours.
What earnings are considered low income in callifonia?
Low income is the total amount earned by a person. The state also uses the total number of household members to determine low income. One person earning 2000 a month in CA is not considered low income. I believe that a household of 4 has to be below 4,000 a month to be low income.
How does the level of income affect if people vote or not?
Most high-income people vote; most low-income people do not.
How can financial resources affect a person's diet?
Financial resources can affect diet, as having a low income can affect the budget. Families with low income may only be able to afford cheap food products, where as families with high income can afford to buy high quality food products. Cheap food products contain high amounts of fat and sugar can have an affect on a persons health and lifestyle. The majority of people with high income, who are able to afford higher quality food products have good health and a healthy lifestyle.
i need denture, low income with no insurance, need affordable denture with payment plans ?
where can i get denture, if i am a low income person
Most economists believe that a sales tax increase affects which group the MOST?
Most economists believe that a sales tax increase affects low-income individuals the most. This is because low-income individuals tend to spend a larger percentage of their income on goods subject to sales tax, making the overall tax burden feel heavier for them compared to higher-income individuals.
Where can you find low income dental care in Alabama?
I need aplace in bham al that will pay for dentals for low income person.
Application of Maslow's hierarchy to sales management?
from low to high: sales person---sales supervisor----district sales manager----regional sales manager----National sales manager----Vice president of sales.
What is the lowest a person can pay in low income housing rent?
$350
