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Author Question: According to the fair rules view of fairness, are taxes fair? Explain. What will be an ideal ... (Read 338 times)

LCritchfi

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According to the fair rules view of fairness, are taxes fair? Explain.
 
  What will be an ideal response?

Question 2

Suppose that the government wants the burden of the cigarette tax to fall equally on buyers and sellers and declares that a 1.00 tax be imposed on each. Is the burden of the tax shared equally? Why or why not?
 
  What will be an ideal response?



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C.mcnichol98

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Answer to Question 1

Taxes are unfair according to the fair rules view because they are an involuntary transfer of private property. While most economists and most people support fair taxation, there is little agreement on what constitutes a fair tax.

Answer to Question 2

Not necessarily. A tax has the same effect regardless of whether it's imposed on buyers or sellers. The division of the burden of a tax between buyers and sellers depends on the elasticities of demand and supply, not on the tax law.




LCritchfi

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


Missbam101

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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