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Taxes on consumers vary by state. Each state has its own laws regarding what is taxed. For information on what is taxed in your state: Go to your states website and search for tax information. Ex. Connecticut charges a 6% sales tax on most goods, however there are many exemptions and variances. ie. Clothing under $50.00 is not taxed. So a 49.99 pair of shoes would not be taxed, however a $50.00 pair of shoes would be charged $3.00 in tax
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What is the incidence of indirect taxes?
Incidence of indirect taxes indicate how much burden of indirect taxes will be borne by the producers and how much by the consumers by way of rise in price.
What taxation atrategy do consumers pay a specfic amount of taxes no matter what?
A "head tax"?
Are taxes levied on consumer or producer of goods?
Both consumers and producers are taxed in one form or another.
Types of taxes?
Proportional taxes, progressive taxes and regressive taxes
What is the purpose of taxation?
OBJECTIVES FOR THE TAX SYSTEMThe Labour Government has identified six main objectives for its tax system - these are summarised belowTo keep the overall tax burden as low as possibleTo reduce tax rates on income to sharpen incentives to work and create wealth in the economyTo maintain a broad tax base - having a range of taxes helps to keep each separate tax rate lowTo shift the balance of taxation away from taxes on income towards taxes on spendingTo ensure taxes are applied equally and fairly to everyoneTo use taxes to make markets work better (including the use of environmental taxes to make both consumers and producers aware of external costs)
What are the effects of sales tax on consumers?
Sales tax directly reduces consumers buying power. When sales taxes are high, consumers are forced to spend more money on taxes and less to spend on other items.
Who can be considered as bearing the burden of indirect taxes?
Consumers.
How does lowering taxes help?
Lowering taxes, either personal or corporate taxes, provides more capital in the hands of consumers or business ... capital for consumers to spend on the goods and services provide by business ... capital for businesses to grow, expand and hire.
What is the incidence of indirect taxes?
Incidence of indirect taxes indicate how much burden of indirect taxes will be borne by the producers and how much by the consumers by way of rise in price.
What factors are affected when taxes are raised or lowered?
When taxes are raised and lowered, the economyi s affected, the money exchange rates and also the lives of people and consumers. This is because there lowering and highering of taxes will take its toll on the consumers and how they are able to balance their salaries and incomes for everyday use.
Are taxes levied on consumers or the producers?
taxes are usually levied up on producer but by shifting tax the consumer aer also effected
What would happened if taxes were lower?
If taxes were lower, businesses and consumers would spend and invest their extra money, causing the economy to grow.
What is impact of taxation?
Taxation reduces discretionary income. With more taxes consumers will purchase less because if they don't they will have to pay more taxes.
What taxation atrategy do consumers pay a specfic amount of taxes no matter what?
A "head tax"?
How would the US government most likely react to a slump in the economy?
Lower taxes to make it easier for consumers and businesses to spend money.
Are taxes levied on consumer or producer of goods?
Both consumers and producers are taxed in one form or another.
If the government raises everyone's taxes consumers have less money or income to spend on consumer goods and services.?
true A+
