Government Taxation and Expenditure
Efficiency vs. Fairness Economists have long been concern ..ed with the impact of taxes on economic efficiency, Recall from Chapter 14 that Henry George argued that a tax 011 land will have little on efficiency because the But economics and politics do 1101 run 011...
Government Taxation and Expenditure
TAXES AND EFFICIENCY Taxes affect both economic efficiency and the distribution of income. In recent years, the impacts on efficiency have become a principal concern of tzx policy as economists and policymakers study the effect of incentives upon individual and...
Government Taxation and Expenditure
Other Taxes Most other state taxes are closely related to the analogous federal taxes. States get most of their revenues from emerald sales taxes on goods and services. Each purchase at the department store or restaurant incurs a percentage tax (food and other...
Government Taxation and Expenditure
Property Tax The property is levied primarily on real estate land and buildings. Each locality sets an annual tax rate which is levied on the assessed value of the land and structures. In many localities, the assessed value may be much smaller than the true market...
Government Taxation and Expenditure
STATE AND LOCAL TAXES Under the U.S. system of fiscal federalism, state and local governments on a very different set of taxes than does the federal government. Figure 16-6 illustrates the main sources of funds that finance state and local...
Government Taxation and Expenditure
Consumption Taxes While the United States relies heavily on income taxes, a radically different approach is consumption taxes, which are taxes on purchases of goods and services rather than on income. The rationale is that people should be penalized for what they use...
