Asked by Arber Gashi on Jun 06, 2024
Verified
Briefly describe why some economists prefer a value-added tax (VAT) to an income tax.
Value-Added Tax (VAT)
A tax on the amount by which the value of an article has been increased at each stage of its production or distribution.
Income Tax
A government levy on individuals' or corporations' earnings.
- Pinpoint the premier tax configurations and clarify the logic underpinning them.
Verified Answer
LO
Larose OlshoppeJun 10, 2024
Final Answer :
Some economists believe that taxing consumption through a VAT would avoid the disincentives to savings created by our current U.S. income tax system.
Learning Objectives
- Pinpoint the premier tax configurations and clarify the logic underpinning them.