Government micro intervention--Taxes

Syllabus points:

Taxes (direct and indirect)

-impact and the incidence of taxes

-specific and ad valorem taxes

-average and marginal rates of taxes

-proportional, progressive, and regressive taxes

-the canons of taxation

-impact and the incidence of taxes

*impact of taxes: The person, company, or transaction on which the tax is levied

in another word, who is legally responsible to hand over the tax to the authorities

*incidence of tax: how the burden of taxation is shared between the producers and consumers

-specific and ad valorem taxes

*specific tax: an indirect tax that is fixed per unit of output

*Valorem taxes: an indirect tax that takes a percentage rate

-average and marginal rates of taxes

*average rate of taxation:…