This document discusses different types of sales taxes - ad valorem tax, whose amount is based on the value of a transaction, and specific tax, which is a fixed amount for each unit. It also notes things to consider with sales taxes like price ceilings, which prevent prices from rising above a set level, and price floors, which prevent prices from falling below a certain point.
This document discusses different types of sales taxes - ad valorem tax, whose amount is based on the value of a transaction, and specific tax, which is a fixed amount for each unit. It also notes things to consider with sales taxes like price ceilings, which prevent prices from rising above a set level, and price floors, which prevent prices from falling below a certain point.
This document discusses different types of sales taxes - ad valorem tax, whose amount is based on the value of a transaction, and specific tax, which is a fixed amount for each unit. It also notes things to consider with sales taxes like price ceilings, which prevent prices from rising above a set level, and price floors, which prevent prices from falling below a certain point.
Types of Tax • Ad valorem Tax • Specific Tax Ad valorem Tax
Whose amount is based on the value of
transaction. Specific Tax Fixed amount for each unit Things to consider • Price Ceiling • Prices will not increase above it. • Price floor • Price will not decrease from this point.