Both a value added tax (VAT) and a national sales tax have been criticized as being regressive

Question:

Both a value added tax (VAT) and a national sales tax have been criticized as being regressive in their effect.
a. Explain.
b. How could this shortcoming be remedied in the case of a national sales tax?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

South Western Federal Taxation Individual Income Taxes 2017

ISBN: 9781305873988

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen

See More Books

Question Posted: Dec 22, 2016 01:00 AM

See More Questions

Virtually all developed countries and many developing countries have a value added tax, commonly known as a VAT. The United States is a prominent exception. The VAT is essentially a sales tax that is...
Contrast a value added tax (VAT) with a national sales tax in terms of anticipated taxpayer compliance.
In no more than six PowerPoint slides, summarize your comments for a debate with other business students on the topic Resolved: The U.S. Should Adopt a Value Added Tax (VAT).
Consider a long cylindrical solenoid with diameter R, number of current loops N and length L through which a current I runs. Now (a) Use Ampre's law to calculate the magnetic field inside the...
The following reasons have been offered for holding inventories: a. To balance ordering or setup costs and carrying costs b. To satisfy customer demand (e.g., meet delivery dates) c. To avoid...
Plaintiffs operate lodges and provide lodging referral services in the Big Bear Valley recreational area. For years, the two ski resorts in the area, Snow Summit, Inc., and Bear Mountain, Inc.,...
Mark Welsch deposits $7,200 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $7,200 plus earned interest must remain in the account 10 years before it can be...
Part A The common stock of Wilson, Inc. is owned by 20 stockholders who live in several states. Wilsons financial statements as of December 31, 1994 were audited by Doe & Co., CPAs, who rendered an...
On 1 January 2020, Pink Limited acquired 30% of shares of Grey Limited and a total consideration of $1,800 million was paid on the same day. Pink Limited also appointed one of its founder and...
a. Determine VL, IL, IZ, and IR for the network Fig. 2.181 if RL = 180 Î©. b. Repeat part (a) if RL = 470 H. c. Determine the value of RL, that will establish maximum power conditions for...
Regarding the value added tax (VAT), comment on the following: a. Popularity of this type of tax. b. Nature of the tax. c. Effect on government spending?
Serena operates a lawn maintenance service in Southern California. As most of her employees are itinerant, they are paid on a day-to-day basis. Because of cash-flow problems, Serena requires her...
If a firm competes in a very unstable industry such as telecommunications, where on the ES axis of the SPACE Matrix would you plot the appropriate point?
Prove that Eq. (19.34) gives the simplest multi-gluon and gluon-quark states that contain an $\mathrm{SU}(3)$ color singlet in the decomposition. Data from Eq. 19.34 (GG)1: (88)1 (Gqq) : [8 (383)8]...
In question 70, what is the probability that of the 100 cars test-driven, more than 35 cars get more than 45 miles per gallon? How many of the 100 cars tested would you expect to get more than 45...
Construct the braid group products (a) (b) using the algorithm of Fig. 29.16 . Data from Fig. 29.16
Worksheet The adjusted trial balance columns of a worksheet for Bond Corporation are shown below. The worksheet is prepared for the year ended December 31. Complete the worksheet by (a) entering the...
The Healthy Catering Service had the following transactions in July, its first month of operations: 1 Kelly Foster contributed $\$ 18,000$ of personal funds to the business in exchange for common...
From the following information, prepare a statement of net position for the city of Lucas as of June 30, 2019.
A supermarket chain is interested in exploring the relationship between the sales of its store-brand canned vegetables (y), the amount spent on promotion of the vegetables in local newspapers (x1)...
Roy decides to buy a personal residence, and he goes to the bank for a $150,000 loan. The bank tells Roy that he can borrow the funds at 4% if his father will guarantee the debt. Roy's father, Hal,...
Determine the taxpayers current-year (1) economic income and (2) gross income for tax purposes from the following events. a. Sams employment contract as chief executive of a large corporation was...
Determine the taxpayers current-year (1) economic income and (2) gross income for tax purposes from the following events. a. Sams employment contract as chief executive of a large corporation was...
Los siguientes datos corresponden a las operaciones de Turk Company el ao pasado: Ventas $ 900 000 Utilidad operativa neta $ 36 000 Margen de contribucin $ 150 000 Activos operativos promedio $ 180...
Problem 16-16 Tax Shields (LO2) River Cruises is all-equity-financed with 53,000 shares. It now proposes to issue $280,000 of debt at an interest rate of 12% and to use the proceeds to repurchase...
In a process costing system, companies use predetermined overhead rates to apply overhead

Both a value added tax (VAT) and a national sales tax have been criticized as being regressive

Question:

Step by Step Answer:

a Both the national sales tax and the VAT are taxes on consumption Both taxes imp...View the full answer

South Western Federal Taxation Individual Income Taxes 2017

Students also viewed these Business Law questions