Overview
Lump sum tax and per unit tax are two distinct forms of taxation that have different implications for individuals and businesses. A lump sum tax is a fixed amount that everyone pays, regardless of their income or consumption levels. This type of tax is straightforward but can be seen as regressive, ...
Key Terms
Example: Income tax is a common type of tax.
Example: A flat fee of $100 for all residents.
Example: A tax of $2 on every liter of gasoline.
Example: Progressive taxes are considered more equitable.
Example: A tax that does not distort market behavior is efficient.
Example: Taxes on income and sales contribute to government revenue.
Related Topics
Progressive Taxation
A tax system where the tax rate increases as income increases.
intermediateRegressive Taxation
A tax system where the tax rate decreases as income increases.
intermediateTax Policy
The principles and practices that govern taxation in a country.
advancedEconomic Impact of Taxes
How taxes affect economic behavior and growth.
intermediateKey Concepts
Tax TypesEconomic ImpactEquityEfficiency