Questions tagged [taxes]
21 questions
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Deadweight Loss Due to Taxes Represented on a Graph of the Market?
Let's say a market is operating at equilibrium, with MSB=MSC, and a tax is imposed on the market. This would shift the supply curve to the left and cause a deadweight loss represented by the triangle on the graph. However, somewhere in a different…
johnsmith13579
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Book reference for graphs explaining ad valorem and specific taxes
Does anyone know any book in which I can read and see graphs about the ad valorem or specific tax in monopolies or perfect competition?
I need a graph like this with the explanation but i can't find it in pindyck and varian they only talk about…
Glohelt
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When solving for a new equilibrium price after the institution of a tax, I keep getting a price that is lower than my previous equil price. Why?
For Example:
$D(p) = 50 - p$
$S(p) = p/20$
The p* of this problem is $47.61$, however, when I add a .1 proportional tax I get an answer of $43.29$ which does not make sense because that price is lower than the previous equilibrium price.
I am using…
maverick1054
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Investors in index funds pay lower taxes, but higher taxes on dividends?
Doesn't the second para. beneath contradict itself? Don't the boldened words contradict each other?
So let’s pick up where we left off a few chapters ago.
Recall that the net annual return was 7.8 percent for the average equity fund over the…
user34970
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3 answers
Why don't governments ban businesses from passing tax costs onto their customers?
So, after a bit of discussion in the comments of this question on the Politics SE, I figured I'd post it here:
One of the arguments against taxing large businesses is that they'll just pass the costs on to their customers, effectively raising…
nick012000
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Externalities, Pigouvian Taxes and Wikipedia
It states on Wikipedia:
A Pigovian tax (also called Pigouvian tax, after economist Arthur C.
Pigou) is a tax imposed that is equal in value to the negative
externality. The result is that the market outcome would be reduced to
the efficient…
aisync
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Is there evidence that non-profits might have a tax or other competitive advantage in competing with for-profit corporations?
Lets say my non-profit's interest is to diminish co2 emissions in the city.
Are there useful forms of putting that tax money for better use and gaining competitive advantage against other for-profit car companies?
Yos
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Does higher tax on luxury goods does more harm than benefit?
I was studying Fiscal policy and I came across measures to reduce income inequality by using fiscal tools. One of the tool mentioned in that was - Higher taxes on luxury goods
This makes sense that luxury good are enjoyed by rich so imposing higher…
Varun Singh
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Do the republican tax cuts cost more than forgiving student loan debt?
It is alleged by this article in the Guardian that the republican tax cuts cost more money than the total student loan debt bubble. The accuracy of this claim was briefly discussed in this post via the Skeptics stack-exchange; the comments on this…
user23691
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Can Direct Taxes on the consumers have a impact on the Demand (rather than supply)?
I'm a 12th-grade student doing a school research paper evaluating the effectiveness of the recent increase in Additional Buyers Stamp Duty in the Singapore Housing market. This tax is directly imposed by the government on the consumer after the…
Kushal Sai Gunturi
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Why are cryptos recognized as a "currency"?
My question is pretty straightforward:
Why a "payment" with cryptos is recognized as a "payment" (at least in the US) and thus you need to pay taxes over it?
My question come from the thought that cryptos, in my opinion, might be recognized as an…
Alberto Sinigaglia
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What is the purpose of taxes if central banks can fund deficit spending?
Somewhat straight forward. If the federal reserve can print money to buy treasuries to fund deficit spending, what is the purpose of taxes? Sure, taxes reduce the amount of deficit that needs to be picked up by the Fed, but if, as ive seen argued,…
Runeaway3
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What does taxes less subsidies mean?
What does 'taxes less subsidies' actually mean? It feels like it is grammatically incorrect. I have assumed it to just mean taxes minus subsidies.
Bill Li
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If there is a tax to be paid for every income event, doesn't that imply most money in circulation belongs to the goverment it circulates in?
So this is my logic, let me know where/how it is flawed:
Starting from 100 units of currency, lets say 100 coins, someone recives that 100 and has to pay any % of that as income tax, lets say 10%, then he/she goes and spends the remaining 90, which…
Miguel Ruiz
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From MMT viewpoint, how do taxes make sense?
I understand this part of MMT: From 100 USD that the Fed prints, the state can get back (or destroy) 10 - 90 USD back in taxes. But what is the effect of taxes on the economy:
A household buys food for 50 USD incl. 10% tax - what is the effect of…
poseid
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