21 lo4 what is the difference between a sales tax and

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(21) [LO4] What is the difference between a sales tax and a use tax?
(22) [LO4] What is an ad valorem tax? Name an example of this type of tax.
(23) [LO4] What are the differences between an explicit and an implicit tax?
(24) [LO4] When we calculate average and effective tax rates, do we consider implicit taxes? What effect does this have on taxpayers’ perception of equity?
(25) [LO4] Benjamin recently bought a truck in Alabama for his business in Georgia. What different types of federal and state taxes may affect this transaction?
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Chapter 01 - An Introduction to Tax in the Alabama sales tax rate and the Georgia use tax rate. Benjamin will also have to pay personal property tax annually on the truck. Finally, since the vehicle is used in Benjamin’s business, he will be able to depreciate the truck for federal income tax purposes. (26) [LO5] Kobe strongly dislikes SUVs and is appalled that so many are on the road. He proposes to eliminate the federal income tax and replace it with a $50,000 annual tax per SUV. Based on the number of SUVs currently owned in the United States, he estimates the tax will generate exactly the amount of tax revenue currently collected from the income tax. What is wrong with Kobe’s proposal? What type of forecasting is Kobe likely using?

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