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Discuss the merits of this exclusion in terms of both efficiency and equity

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 4DQ: Based solely on the definitions in the chapter, is the sales tax a proportional, regressive, or...

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Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not.

Discuss the merits of this exclusion in terms of both efficiency and equity.

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Based solely on the definitions in the chapter, is the sales tax a proportional, regressive, or progressive tax? Explain, and state how the tax might be viewed differently.
What statement is false? a. A tax on consumption will effectively result in virtually all residents of the State paying the tax. b. A tax on consumption would support savings initiative. c. The consumption tax for purchases of goods or services from foreign sources shall be payable by the buyer. d. Business taxes are usually included in the price of goods and services of the seller but are remitted by the seller to the government. e. All of the statements is correct.
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