Ie as taxable purchases increase the sales tax rate

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i.e., as taxable purchases increase, the sales tax rate (i.e., the marginal tax rate) remains constant. Nonetheless, when you consider that the proportion of one’s total income spent on taxable purchases likely decreases as total income increases, the sales tax may be considered a regressive tax. (14) [LO3] Arnold and Lilly have recently had a heated discussion about whether a sales tax is a proportional tax or a regressive tax. Lilly argues that a sales tax is regressive. Arnold counters that the sales tax is a flat tax. Who is correct?
(15) [LO4] Which is the largest tax collected by the U.S. government? What types of taxpayers are subject to this tax?
(16) [LO4] What is the tax base for the Social Security and Medicare taxes for an employee or employer? What is the tax base for Social Security and Medicare taxes for a self-employed individual? Is the self-employment tax in addition to or in lieu of federal income tax?
(17) [LO4] What are unemployment taxes?
(18) [LO4] What is the distinguishing feature of an excise tax?
number of excise taxes on goods such as alcohol, diesel fuel, gasoline, tobacco products and services such as telephone services. In addition, states also often impose excise taxes on these same items.

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