Purchase Solution

Sales tax: convenience, equity, sufficiency and neutrality

Not what you're looking for?

Ask Custom Question

The sales tax laws of many states exempt the purchase of groceries and prescription drugs from tax. Such exemptions are intended to improved the:

A. Convenience of the tax
B. Equity of the tax
C. Sufficiency of the tax
D. Neutrality of the tax

Purchase this Solution
Solution Summary

The solution discusses the application of sales tax at the state level in a 168 word solution.

Solution Preview

The sales tax exclusion in many states addresses the equity of tax. That refers to the type of tax and who will pay it. The system of taxation should strive to minimize interference with business economics, be fair, and be easy to ...

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

View More Free Quizzes
Related BrainMass Solutions

  • Market value of firm and its debt and equity

    Assume a one-period model, risk neutrality, and an annual discount rate of 15 percent. a. Assuming there are no costs of bankruptcy, what is the market value of each firm's debt and equity? b. What is the value of each firm? c.

  • Mission of the Financial Accounting Service Board

    As an additional step to further ensure neutrality and fairness, during development phase of a standard, "usually prior to issuance of an Exposure Draft, the Board may choose to conduct field visits for the purpose of assessing the costs and benefits

  • Lorenz Curve: Distribution of Wealth in the United States

    Horizontal equity can be used to reduce inequality because it holds that people with a similar ability to pay taxes should pay the same amounts. It is related to tax neutrality.

  • Key Financial Ratios that Measure Stability of a Company

    Stability is the ability to remain viable in both long-term commitments and working capital sufficiency contexts FINANCIAL STABILITY RATIOS ­ measure the ability to remain viable in both long-term commitments and working capital

  • Costs of Financial Distress

    The benefits of debt are balanced by the increased required rate of return on equity. In the presence of taxes, the value of levered firm is higher than the unlevered firm because of tax shield.

  • Preparation of a Retained Earnings Statement

    Current Net Income $8,210 Contributed Capital 2,400 Retained Earnings 1,000 Total Owner's Equity $11,610 Total Liabilties and Owner's Equity $20,530 For your convenience, I have attached a formatted MS Excel file containing

  • United States Neutrality in WWI

    It has been documented that Wilson's policies regarding the sales of munitions, the credits to belligerents (as in a nation or person engaged in war or conflict), and permitting travel on belligerent ships, favoured Britain over Germany, at the same time

  • Debt-equity ratio of 0.75

    ., has sales of $753,000, costs of $308,000, depreciation expenses of $46,000, interest expense of $21,500, and a tax rate of 35percent. What is the net income for the firm? Suppose the company paid out $67,000 in cash dividends.

  • valuation based on comparable trades of companies

    It has used six multiple: Price/earnings, MV firm/EBIT(1-Tax rate), MV equity/BV equity, MV firm/BV firm, Price/sales and MV firm/sales (X).

View More Related Solutions