Indirect Taxes

Keeping the poor in poverty

Definition of indirect taxes.

An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).

How this helps and hinder's the lower class.

PRO'S : Imposing Taxation is not bad after all because this is one way how government raises income or revenues to be used for the expenses of the government. Thus; a good taxation process is a foundation of the country’s economic status. Indirect taxation, levied on articles of consumption, has this great advantage,—that the consumer has the power of taxing himself or avoiding taxation as he pleases, and government has the satisfaction of knowing that he generally pleases to tax himself to the full extent of his means. Any man may regulate his expenditure as he thinks proper, and he has only to pay indirect taxes in proportion to his expenditure.

CON'S: indirect taxes can really hurt poor people, because the taxes are all the same. So what seems to be little to the rich can be problematic to the poor. Indirect taxes add to the inflation price causing inflation to rise.

our opinion on the matter.

in our opinion we can do without the indirect taxes that were in place. I feel that the extra taxes that hinder others from becoming financially stable(poor people) and help others keep their enormous wealth. This creates a gap in the classes that are hard on the people in the lower have but lenient on those in the upper class. So yes i don't agree with the indirect tax we have in place.

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Economics Lecture (IAS) : Indirect Tax