Indirect taxation Flashcards
1
Q
What is flat tax?
A
Tax imposed on firms, but can be passed on through higher prices
2
Q
How does tax work?
A
The more expensive the item, the more tax you pay on it
3
Q
What are some benefits of flat tax?
A
-good way for the government to gain money
-causes a change in habits
-can be used to reverse damages caused
4
Q
What are some issues with flat tax?
A
-not between for budgeting purposes
-creates higher levels of inequality
-didn’t raise as much money as expected
5
Q
A
