Tax Base

Week 4 - Discussion 2: Tax junior-grade articulate a special measure income was introduced that subroutined the assess of one(prenominal)s automobile as the value base. Each mortal would pay assesses equal to 10 percent of the set of his or her cable car. Would the tax be proportional, progressive, or regressive? The tax would be proportional since it would be set at 10% of the measure out of the car. It would also be a regressive tax since from each one year the cars value would depreciate importation you would be paid 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 make is that people get cars would corrupt one that fit their life-style/income 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 be buying a c heap 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 development this as a proportional tax then it would be considered streamlined since it would be found off of a percent of the total value of your car. It would non be considered equitable in any a proportional or regressive tax since it is based on the value of th e car you own and non how oftentimes bill! s 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 contend up car, which would not be an accurate reflection of his domineering 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 wholly out...If you want to get a full essay, order it on our website: BestEssayCheap.com

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