Why would expensing of capital assets for tax purposes encourage investment in new capital? How do retail sales taxes, as used in most states, tax a base that is smaller than a comprehensive consumption base? What are the consequences of excluding certain items from the consumption base? Why is the property tax often asserted to be regressive with respect to income in the United States?

1. Why would expensing of capital assets for tax purposes encourage investment in new capital?

2.How do retail sales taxes, as used in most states, tax a base that is smaller than a comprehensive consumption base? What are the consequences of excluding certain items from the consumption base?

3. Why the property tax is often asserted to be regressive with respect to income in the United States? Do you agree with this view?