Tax Base

Week 4 - Discussion 2: Tax basal articulate a special appraise was introduced that subroutined the assess of one and only(prenominal)s automobile as the task base. Each person would pay revenue enhancementes equal to 10 percent of the set of his or her cable car. Would the evaluate be proportional, progressive, or regressive? The tax would be proportional since it would be set at 10% of the regard as of the car. It would also be a regressive tax since from each one year the cars value would depreciate importation you would be pay less(prenominal) and less taxes each year. few individuals might end up paying more taxes if their car increases in value. What assumptions do you make in answering this question? The assumption I am do is that people get cars would steal one that fit their life style/income take aim. I am also assuming that someone that has a high income would be buying a car that reflected their income level and some with a low income would b e buying a cheap car. some other thing that I am assuming is that everyone is buying a car. If an individual could afford a car but chose non to then they would ultimately be evading the tax all together. They could use public transportation or buy a rhythm to get around. Do you think the tax that was imposed both streamlined or equitable?

If you were victimisation this as a proportional tax then it would be considered high-octane since it would be base off of a fortune of the total value of your car. It would non be considered equitable in either a proportional or regressive tax since it is based on the value of the car you own and non how ! such(prenominal) bills you actual earn. In my opinion I do non think this scenario is either efficient or equitable. Its not efficient since there are people that would cheat the system. You could have a very wealth individual by an old contest up car, which would not be an accurate reflection of his crucial wealth. You would also have individuals that would find other ways of not having to buy a car. Lastly you would have individuals buying cars that were all out...If you want to get a full essay, order it on our website: BestEssayCheap.com

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