First, the price is one of the factors that carried out the demand curve. If the price of tobacco products rose to 70 R.O, and the purchase of tobacco products less. That 's what I mean, when you increase the price of tobacco products, the demand for this product will decline. (Inverse) relationship, because the required amount of falling prices higher and higher with a lower price, we say that the quantity required is linked to the negative price. When other factors constant (fixed).
Also, as indirect tax is a regressive tax, income inequality arises because most smokers fall in the category of low to middle income individuals. Another disadvantage is that the reduction of the consumption of cigarettes is low in the short run due to its low elasticity. However, the advantages of imposing indirect taxes are high government revenue which can be used to fund and promote merit goods. Also, greater reduction in smoking in the long run because elasticity increases in the long run as consumers have time to pick their
A different issue that affected inequality in the economy was that people with power often would pay themselves large salaries over their employees. The new tax reform was also in favor of the rich because it helped reduced their taxes which did little good for the average American. In 1993 the tax code changed several inequities that were in the government tax structure in the 1980s. The rise in minimum wage improved the quality of living for the people who received a very low wage for working. This caused a decrease in inequality pay but not for income.
Smoking is bad for the economy. Smoking Costs americans “$ 157 billion in annual economic losses”(Pesko).Americans could use that money for schools or medical reasons. This is all caused by “The
Because now you can be fined if you do not have insurance. It has made our taxes go up especially for the wealthy. It is making people lose their jobs and hours because businesses are cutting the worker hours to avoid covering the extra cost of employees insurance. People should not have to pay for health insurance or be threatened with a large fine for not having it. It is intrusive for the government to require you to have insurance.
Is it ethical and rational to tax more on rich? Why must the rich pay more tax to help the poor? Although taxing more on rich seems unfair for the rich, it is necessary that rich people should pay more tax and the amount they pay are based on their incomes. First of all, the important reason that can be presented is that the rich people have utilized the public system more. As Elizabeth Warren said, "There is nobody in this country who got rich on his own.
history because the government cut taxes for rich Americans. Tax cuts mean that people would be able to keep more of their money instead of giving it to the government. Having more money on hand allows people to spend more. Some invested in stocks. United States History and New York History: Post-Civil War to the Present says that tax cuts would "give the wealthy an incentive to invest... the economy created new, better paying jobs."
Studies show that when people quit smoking they spend their money in different sectors of the economy creating more jobs and economic growth. Tobacco consumption in countries that had a ban showed a dramatic decrease in consumers compared to countries that did not have the ban in place. The ban on tobacco only works if it is properly implemented and tobacco control policies are intact. The opposition of the ban contend that the government is overstepping boundaries by telling adults that they are not able to decide what is good or bad for themselves. Also they argue that individuals who smoke are doing so of their own free will and that they know the effects of smoking and decide to smoke anyway.
The Article above talks about the impacts on society as whole due to the consumption of cigarettes these impacts are known as externalities. 1An externality occurs when the actions of consumers or producers give rise to negative or positive side effects on other people who are not part of these actions, and whose interests are not taken into consideration. Cigarettes are a very common example of Demerit goods. 2Demerit goods are goods that are considered to be undesirable but are overprovided and over consumed. 3Indirect taxes are imposed on spending to buy goods and services.
The MPB is higher than the MSB and the difference between the two is the negative externality. From a social point of view the MSC should be equal to the MSB (decrease in consumption), reaching an optimum equilibrium in which there is no negative externalities. Moreover we can see the welfare loss provoked by the overconsumption of fast food. The government wants to solve this market failure situation by applying an Ad valorem indirect tax of a 2% on junk food that would provoke a decrease in the consumption. The tax is an extra cost for suppliers and so they will decide to decrease the amount of junk food supplied moving the supply curve to the left.
In the United States, we favor progressive income tax. It is a taxing mechanism in which the taxing authority charges more taxes as the income of the taxpayer increases. A lower tax is collected from taxpayers earning less. The higher class is affected more by this taxation, because they are taxed higher than the middle and lower class. Many people argue that this taxation is not fair, because the higher class, just like the middle and low class, work for their money, and should not be punished for their wealth by paying higher.
To try to fix the imbalances previously discussed, two main changes have been suggested: take more in and send less out. Currently Social Security is financed by a 12.4% tax on wages and salary, up to $118,500. The ‘take more in’ approach would be executed by raising the tax by 2.9% or removing the cap to close the funding gap. The ‘send out less’ approach is the less accepted approach, because it is seen as more beneficial to those with higher incomes. The main focus of this approach is getting people to retire later, but people with higher incomes enjoy higher life expectancies.
Armey also notes that “the tax code actually punishes savings and investment, by placing double or even triple tax burdens on capital. This lowers wages, destroys jobs, and depresses the living standards of all Americans.” The tax code needs to be reformed and a national sales tax is the best way to fix things. Although opponents may claim that it is regressive, the United States of America should reform its tax code by replacing income tax with sales tax because a national sales tax would cause our industry to grow, revolutionize our work force, and eliminate tax
These benefits would be only be available to the lower and middle class, leaving the rich without benefits, thus creating income equality. This is not the only time the rich will not receive benefits, but the poor will as Krugman says an increased minimum wage will raise the social status of the poor. Raising of the minimum wage, at the time when the article was written, would allow the lower classes to bring in an increased income annually. The rich are then forced to pay their workers more, which means less money for the wealthy annually. This means the poor would make more money, the middle class would stay the same, and the rich would make less annually, therefore bringing income equality.
This can result to more stable economic growth and higher overall tax revenue. List of Cons of a Flat Tax 1. It favors the wealthy. Those who are earning bigger income can enjoy paying less tax, so they end up with more money, further widening the gap between the wealthy and poor. 2.