VOCABULARY
PROS OF VAT
TAX REFORM 1997
100
Additional tax above and beyond the base rate.
What Is Surcharge?
100
Hard to avoid because tax collector levies it on the total amount of sales less the cost of inputs.
What Is The First Advantage?
100
Largest tax reduction since 1981 act was passed.
What Happened In 1997?
200
Larger than normal depreciation charges.
What Is Accelerated Depreciation?
200
Tax incidence is widely spread, which makes it harder for single firm to shift burden of the tax to another group.
What Is The Second Advantage?
200
The 1996 elections.
In What Year Of Elections Did The Balance Of Power Dramatically Shift On The Political Side?
300
Profits from the scale of an asset held for 12 months.
What Is Capital Gains?
300
Easy to collect because firms make their VAT payments to government along with regular tax payments.
What Is The Third Advantage?
300
The tax on capital gains.
What Was Reduced From 28 To 20 Percent?
400
Tax placed on the value that manufacturers add at each stage of production.
What Is VAT (Value-Added Tax)?
400
Some supporters claim that VAT would affect people's behavior in manner that encourages them to save more than they do now.
What Is The Fourth Advantage?
400
The Inheritance taxes. The so-called "death taxes".
What Were Also Lowered And What Is The So-Called Name For Them?
500
Reduction in business taxes that are tied to investment in new plant and equipment.
What is Investment Tax Credit?
500
Spend less-and save more-than you do now.
If None Of Your Money Is Taxed Until It Is Spent, You Might Prefer To Do What?
500
Page 244.
On What Page In The Cover Story Were The Inheritance Taxes Discussed?
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