Taxes and Elasticity
,Tax
•What is Tax?
•Who pays tax?
•What are the types of Taxes?
, Meaning of Tax:
• Taxes are involuntary fees levied on individuals or corporations and
enforced by a government entity—whether local, regional or
national—in order to finance government activities.
• In economics, taxes fall on whomever pays the burden of the tax,
whether this is the entity being taxed, such as a business, or the end
consumers of the business's goods.
• Taxes are applied to some form of money received by a taxpayer.
• The money could be income earned from salary, capital gains from
investment appreciation, dividends received as additional income,
payment made for goods and services, etc.
,Tax
•What is Tax?
•Who pays tax?
•What are the types of Taxes?
, Meaning of Tax:
• Taxes are involuntary fees levied on individuals or corporations and
enforced by a government entity—whether local, regional or
national—in order to finance government activities.
• In economics, taxes fall on whomever pays the burden of the tax,
whether this is the entity being taxed, such as a business, or the end
consumers of the business's goods.
• Taxes are applied to some form of money received by a taxpayer.
• The money could be income earned from salary, capital gains from
investment appreciation, dividends received as additional income,
payment made for goods and services, etc.
