{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

4.17.08 - 1 2 general sales tax a the sales tax is levied...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1) 2. general sales tax a) the sales tax is levied on retail sales. Almost half of all states have a rate between 5 and 6 percent. b) Sales taxes generally are not applied to sale of food, prescription drugs c) Low citizen attention to sales taxes makes them attractive to politicians d) Property and income take bigger chunks of money, so people notice more e) Sales taxes are very elastic, meaning that revenues fluctuate depending on how well economy is doing 2) Income taxes a) State income tax rates are typically much lower than federal rates b) Graduated income tax-rate of taxation increases as income increases c) Flat income tax- everyone in the state pays the same rate d) Only 10 states do not tax personal income 3) Excise taxes a) A special type of sales tax on selected commodities such as cigarettes, alcoholic beverages, and gas b) Often called sin taxes c) By heavily taxing users, states hope to reduce public consumption of these goods. Society benefits from lower consumption of these goods
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online