In: Accounting
Q. discuss the relevance of taxation in our society and its ability to influence social behaviour?
Legislators have three needs in mind as they prepare tax laws-
Below are three taxes that have affected the economy and
consumers' behaviors. All are direct taxes.
A sin tax is used to discourage the use of products and services
that could pose a risk to someone's health, such as alcohol and
cigarettes. Puritan colonists used the earliest sin taxes in this
country.
The gasolin excise is a user tax on gasoline purchases. People who
use gasoline pay taxes on it. These revenues maintain and build
roads and highways and regulate underground pollution related to
gas storage. Urban area mass transportation is developed and
maintained by gas tax revenue.
Luxury taxe are taxes on expensive, nonessential items, such as
luxury cars. Revenue from luxury taxes is redistributed through
government programs that benefit all citizens.