ACCT 421 Chapter Notes - Chapter 1: Tax Rate, Regressive Tax, Proportional Tax
Document Summary
Lo 1-1: demonstrate how taxes influence basic business, investment, personal, and political decisions. Taxes are significant costs that influence many basic business , investment, and personal decisions: business decisions: How to distribute profits: investment decisions: Alternative methods for saving for education or retirement: personal finance decisions: Taxes also play major part in the political process. Major parties typically have very diverse views on whom, what, and how much tax. Lo 1-2: discuss what constitutes a tax and the general objective of taxes. The general purpose of taxes is to fund the government. Unlike fines or penalties, taxes are not meant to punish or prevent illegal behavior; but. Tobacco, tanning beds, etc. ) are meant to discourage some behaviors. The three criteria necessary to be a tax are: the payment is required (it is not voluntary, imposed by a government (federal, state, or local, not tied directly to the benefit received by the taxpayer.