網頁"We should impose a 20 percent luxury tax on expensive automobiles (those with a sales price of $50,000 or more) in order to collect more tax revenue from the wealthy." Will the burden of... 網頁2024年1月4日 · Tax incidence is said to “fall” upon the group that ultimately bears the burden of, or ultimately has to pay, the tax. The key concept is that the tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply. Inelastic Supply, Elastic Demand

Introduction to Elasticity: Elasticity and Tax Incidence Saylor …

網頁WHO PAYS THE LUXURY TAX? In 1990, Congress of USA adopted a new luxury tax on items such as yachts, private airplanes, furs, jewelry and expensive cars. The goal of the tax was to raise revenue from those who could most easily afford to pay. Because only rich could afford to buy, such extravagances, taxing luxuries seemed a logical way of taxing. 網頁In the tobacco example, the tax burden falls on the most inelastic side of the market. If demand is more inelastic than supply, consumers bear most of the tax burden, and if supply is more inelastic than demand, sellers bear most of … bright folding card table

Chapter 6: Supply, Demand, and Government Policies

網頁2024年6月3日 · As a result, firms cannot pass on any part of the tax by raising prices, so they would be forced to pay all of it themselves. By way of contrast, an elastic good or service is one for which a 1 percentprice change causes more than a 1 percent change in the quantity demanded or supplied. 網頁[Solved] The burden of a luxury tax usually falls A)more on the rich than on the middle class. B)more on the poor than on the rich. C)more on the middle class than on the rich. D)equally on the rich, the middle class, and the poor. 網頁The burden of a luxury tax usually falls a. more on the rich than on the middle class. b. more on the poor than on the rich. c. more on the middle class than on the rich. d. equally … can you eat corn tortilla on keto