Answered: The fact that lower-income families…

The fact that lower-income families will spend a higher percentage of their income on tangible goods that are taxable than higher-income families means that sales tax is what type of taxation system?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The fact that lower-income
families will spend a higher
percentage of their income on
tangible goods that are taxable
than higher-income families
means that sales tax is what
type of taxation system?

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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