Taxes – Coursework Example
11 April Taxes Taxes are divided up among and local taxes, as well as federal, and include consumption taxes of products and services people use, property and wealth categorized taxes, and also business and income taxes. Tax incidence is an estimation of what taxes will do to an individual in case the economy has changed. One way to help analyze incidence is to compare prices of changes in taxes in the economy and also if taxes for goods and services have changed. Tax efficiency is determined on the margin of the social cost as compared to the social benefit for all goods.
Property tax is one of the most confusing taxes for people to understand but there is a structure set up that helps determine the tax rates and how they are measured. Property tax accounts for almost one-third of all state and local government tax revenue. Property tax is assessed based on what an assessor determines a person’s personal property is worth and in this infrastructure, each assessor is elected in local county elections which makes adds a political factor.
Many people have different views on taxes and several believe that property taxes are regressive. This is because it is another cost to people who live on their own are of a lower-income bracket which can put them in a further personal monetary rut. Many times the money that is used is of a greater proportion of their annual income for people in a lower income family than those who are in a higher tax bracket which leads to an economy that is regressive.