A report on Value-added tax, Regressive tax and Tax
A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally.- Value-added tax
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.- Regressive tax
Payroll taxes, such as FICA and Unemployment Insurance in the United States, and consumption taxes such as value-added tax and sales taxes are regressive in that they both raise prices of purchased goods. Lower-income earners save and invest less money, so pay a larger proportion of their income toward these taxes, directly for sales tax and as the price increase required to make revenue covering payrolls for payroll taxes.- Regressive tax
Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are sometimes used to justify a sales tax or value added tax.- Tax
The incidence of taxation varies by system, and some systems may be viewed as progressive or regressive.- Tax
Some critics consider it to be a regressive tax, meaning that the poor pay more, as a percentage of their income, than the rich.- Value-added tax
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Sales tax0 links
A sales tax is a tax paid to a governing body for the sales of certain goods and services.
A value-added tax (VAT) collected on goods and services is related to a sales tax.
Because the rate of a sales tax does not change based on a person's income or wealth, sales taxes are generally considered regressive.