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Consequence of Taxes

In: Business and Management

Submitted By Toplancer
Words 635
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5 November 2015
Consequences of Taxes: The Whiskey Rebellion According to (Ricardo, 817), the tax is a financial charge imposed on taxpayers. Avoidance or evasion of tax is punishable by law. Taxes can either be indirect taxes or direct taxes. It is worth noting that a few countries in the Middle East impose no taxation. Examples of Direct taxes include income tax, corporate tax, and any tax imposed on property. Indirect taxes, on the other hand, include, value added tax, sales tax, per unit tax and excise tax. In this paper, I will discuss excise taxes and also the impact of taxation. According to (Kaplow, 512), excise taxes are paid when certain goods such as gasoline are purchased. Excised taxes are put in the price of the product. Excise taxes are also imposed because of wagering and also to trucks when they use major highways. In the video, various issues surrounding excise tax have been highlighted. One of these issues includes the principle of taxation that is fairness, and the other issue is tax incidence.
A). Benefits Principle According to (Dubin, 234), this principle outlines that imposition of tax should depend on the benefits received. This policy argues that those who should pay high taxes are those who receive greatest benefits. This principle of taxation is applied to usage of public goods such as libraries, highways, national parks, colleges, forests, etc. The principle of fairness explains that tax imposed on individuals or corporate must be equal across the board, all should carry equal tax burden. In my own I do not believe that the excise tax imposed upon Whiskey by the US government is not justified. This deduction is as such because first the circumstance that the US was under was revolutionary war. Therefore, the benefits that the United States accrued from this war helped the entire

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