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From course:

Economics A Level (DONEEEEEEE)

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Question:

What type of Tax is VAT?

Author: eric_galvao



Answer:

-VAT [Sales Tax] is a Proportional Tax - Fixed Percentage that doesn't care for Price or Income -But it may be seen as Regressive. % of Total Income that Rich Spends is Less than that of the Poor as the Rich can Afford to Save more of their Income


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