Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The question being asked is the last paragraph that starts with do you think... Much of Europe operates under a VAT tax regime (VAT

The question being asked is the last paragraph that starts with " do you think..."

image text in transcribed Much of Europe operates under a VAT tax regime (VAT stands for Value Added Tax), where consumption is taxed at an average rate of 21%. This means that if you go out to a restaurant and purchase a meal, for example, you would spend an additional 21% of your total bill on the VAT tax. Currently, 45 U.S. states collect a sales tax, which is similar but has many exceptions (including on groceries) and, at the highest rates, amount to about 9%. Since a high tax on something reduces the desire to do it, a VAT tax reduces consumption. In a place with a high VAT tax and a low interest income tax, you would be more likely to save, because consuming is expensive (tax-wise ) while saving is less expensive (tax-wise). do you think it would be good for the U.S.'s long-term economy to adopt a VAT tax system and decrease interest income taxes? Support your answer as to why or why not. Remember to define what you mean by a "good" economy in terms of overall wealth, inequality, the budget deficit etc

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Morality Of Economic Behaviour Economics As Ethics

Authors: Vangelis Chiotis

1st Edition

1351168878, 9781351168878

More Books

Students also viewed these Economics questions

Question

Write a program to check an input year is leap or not.

Answered: 1 week ago

Question

Write short notes on departmentation.

Answered: 1 week ago

Question

What are the factors affecting organisation structure?

Answered: 1 week ago

Question

What are the features of Management?

Answered: 1 week ago

Question

Briefly explain the advantages of 'Management by Objectives'

Answered: 1 week ago

Question

13. Give four examples of psychological Maginot lines.

Answered: 1 week ago