who do taxes burden?

Question

Who suffers from a larger loss in welfare? That is, who suffers from a larger loss in surplus?



A. The government

B. Consumers

C. Producers


i'd prefer a source please, someone with microeconomics exp, please

Answer 1

Firstly, tax is defined?

A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (for example, secessionist movements or revolutionary movements). Taxes could also be imposed by a subnational entity. Taxes consist of direct tax or indirect tax, and may be paid in money or as unpaid labour. A tax may be defined as a "pecuniary burden laid upon individuals or property to support the government […] a payment exacted by legislative authority."[1] A tax "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government […] whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name."[1]

In modern taxation systems, taxes are levied in money, but in-kind and corvée taxation are characteristic of traditional or pre-capitalist states and their functional equivalents. The method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics. Tax collection is performed by a government agency such as Canada Revenue Agency, the Internal Revenue Service (IRS) in the United States, or Her Majesty's Revenue and Customs (HMRC) in the UK. When taxes are not fully paid, civil penalties (such as fines or forfeiture) or criminal penalties (such as incarceration)[2] may be imposed on the non-paying entity or individual.

Source:en.wikipedia.org/wiki/Tax_burden - 42k - Cached

Who are burden?
1. Direct tax is enforced upon individuals who are salaried employees and those who are engaged in business. This tax is called income tax.

2. Corporations/Firm/Juridical entities-are taxed upon their net income, levied for a direct and indirect taxes, e.g. income and value added tax.

3. Consumers-levied for an indirect taxes-buyers of commodities are subjected to value added tax, raging from 12% to 18% of selling price of a goods,.

Answer 2

A wel designed tax system would be a value add tax. One that taxes only on prchases. The rich buy more and would share more of the tax burden. It is proven time and again that the lower the tax rate the higher the tax revenues for the government.

Answer 3

In a well designed tax system, the burdens are shared equally.