Taxation

Jenkins/Partee
Taxation
August 9, 2009

Arguments ar made on some(prenominal) sides regarding who pays levied revenuees, the emptor or the seller. In my opinion, the argument that seems most logical and true(a) is that both pay the taxes regardless of who the government says it is taxing. The amount pay by the buyer or the seller leave behind vary, however, the consumer as well as the seller eventually ordain both carry the tax burden.
The article by Steven Walkers, State to place charging sales tax on online digital purchases Oct. 1, specifically addresses how Wisconsin will collect taxes on Internet downloads. The article claims that this tax will cost consumers $6.7 a year. Though the article does not specifically address the cost to the sellers, it does mention that this tax should somewhat direct the playing field. This will happen because the savings previously undergo by buyers with appear the tax, will no longer exist. These consumers may accept more often to do business locally instead.
The immature York Times article, Marijuana Supporters Welcome a Tax sum up by Jesse McKinley, has a different twist on the subject.



instead of concerns about who is paying the change magnitude 15% on Marijuana, it turns out that some Californians are just happy to learn of the overpower vote in favor of the increased tax. This means at that place is a greater approval of Marijuana not lone(prenominal) for medicinal purposes, but, even perhaps eventually as a legalized entertainment drug.
Concerning the effect tax has on supply and demand, agree to our text book reading a tax on the market shrinks the size of the market. For the new Wisconsin tax on digital purchase, the discussion did not address this possibility. It does seem possible that the increased cost might affect demand. Most digital purchases are not basic necessity; they are what is defined as elastic. Movies and photos are extras an individual purchase, not a necessity. The new tax could result in people purchasing...If you want to get a full essay, order it on our website: Orderessay



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