hw 4 should we place a $10 sales tax on producers

hw 4 should we place a $10 sales tax on producers - To:...

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To: Congressional Staffers From: Ryan Hayes, Health Care Industry Specialist Subject: Should we place a $10 Sales Tax on Producers because of Health Care’s High Profits? After analyzing the government’s proposal of placing a 10 dollar sales tax on health care industry, I have decided that this proposal is not a great idea. First, the government is making a vague statement and are maybe being lazy by say that “O, the $10 is clearly on producers”. Well, not necessarily, I say. If you put the $10 sales tax on producers, you are really just adding another bill that the Health Care companies have to pay. So in order for the health care companies to pay for that bill, they can simply increase the fees for consumers. Since the demand for health care in general is inelastic, this means that no matter how high the tax is that people are still going to have health care because it is necessary in order to live and survive this world. Instead of me telling you all of this, let me just show you. As you can see, even though the government says that the $10 sales tax is on producers, they can
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hw 4 should we place a $10 sales tax on producers - To:...

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