ACCT 210 Lecture Notes - Lecture 4: Window Tax, Sales Tax, Market Distortion

• School: College of The Sequoias
• Department: Accounting (ACCT)
• Course: ACCT 210
• Professor: mohamed

Document Summary

Many countries have high standards of social protection against the risks of unemployment and sickness, and make costly public provision for the costs of old age require high levels of taxation on incomes and spending. The distortionary costs of taxation: the economic value of these tax-induced changes in individual decisions. The excess burden of taxation: reflects the idea that taxes which affect behaviour impose costs on taxpayers over and above the money which is collected in tax a way of measuring this economic harm from distortionary taxation. Efficiency in revenue-raising: raising a given revenue at the lowest possible distortionary cost. The window tax : charging people by the number of windows in the property they occupied distribute the burden of taxation roughly in proportion to the wealth of different taxpayers. Most taxes which are levied have the potential to modify and influence the individual behaviour - costs are being incurred in the course of raising revenue through taxation.