I need help with these questions.
Evaluate the impact that the fair tax might have on a business:
1) what might happen, in general to the firm's demand?
2)what impact would an inelastic vs. elastic demand curve have on this tax?
3)what would happen to the firm's cost structure?
4)how would firms' that are heavily dependent upon foreign sales be affected?
2007-04-28 03:44:36 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
1. if the business supplied paper or ink to the printer that makes tax forms today,, they would be hurt because there would be no IRS or tax forms as we have today.
2. what the hell does that mean??
3.
4.
the fair tax is about not having an income tax and having a national sales tax to replace the revenue lost from not having the income tax. Poor people would not pay this tax and it is suggested the sales tax be progressive, so rich would still be paying more. (fair?) So, what does this have to do with business? If I pay tax only if I buy something,, am I gonna buy anything? especially big ticket item like car, boat, etc.??
One reason you are in this class is to think,,
2007-04-29 04:24:08 · answer #1 · answered by Jeff 3 · 0⤊ 0⤋
Without a concise definition of the term "fair tax" it's not possible to provide any kind of answer.
2007-04-28 11:19:24 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 1⤋
isn't the term "fair tax" an oxymoron?
something about that just doesn't sound right,, know what I mean?
(or does this mean when they have a county fair,, it is taxed,,??)
2007-04-28 11:21:15 · answer #3 · answered by Jo Blo 6 · 1⤊ 0⤋