I would pay higher sales tax than that of higher income tax, because I could spend more money if I do not pay big part of my income by tax. Then I could spend more goods what I want. Income tax gives much money to government for their spending; also it discourages people from working, because more works to earn high income need to pay high income tax.

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4. I would prefer to pay higher sales tax. It is because if I pay higher income tax, I have to spend huge proportion of my income for the tax so it feels like I am spending more money. Moreover, if there is a higher income tax, it is compulsory to pay for the tax but I can control myself not to purchase goods that are imposed higher sales tax.

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1. What make’s a sales tax regressive if everyone has to pay, say, 10% on top of the regular sales price of a good or service?

If everyone has to pay 10% on top of the regular sales price of a good or service, it will affects to the low income people. For instance, there is a person whose income is $10,000 and when he want to purchase a product which is $100, then he need to pay total $110 with including $10 tax.

It is very valuable to the people whose income is $10,000, however, it is not valuable to the people whose has high incomes.

4. What would you prefer to do: pay a higher income tax or a higher sales tax? What are the pros and cons of direct versus indirect taxes?

I would prefer to pay a higher sales tax than a higher income tax, because I will not waste my money spend on not necessary products, and can purchase necessary things first. Sales tax is a regressive tax because it has large disadvantages to the people with low income. And it makes them people with low income make poorer.

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3. In a long run, it is important for a country to have balanced budget because the country will not be in so much debt with other country. However, this is really impossible to do

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Sales tax should be considered as regressive tax if everyone has to pay, say, 10% on top of the regular sales price of a good or service. This is because if a person earns $100000 and buys $100 good with 10% of good, the tax will not be valuable. However, if a person earns around $1000, the 10% of tax will be very valuable to him.

4. What would you prefer to do: pay a higher income tax or a higher sales tax? What are the pros and cons of direct versus indirect taxes?

In my opinion, I would prefer paying higher sales tax to paying higher income tax. This is because I can save my money more efficiently and do not have to give the money to government. So, I can select goods or services in various ways. However, for higher income tax, I have to pay tax to government for government spending, and I can't control my money efficiently. That's why i think paying higher sales is better than higher income tax

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2. I would prefer to pay a higher sales taxes than a higher income taxes, because if I earn higher income, the amount of the income tax I pay would be greater, and I might get disincentives to work if the portion of the income taxes are too high. Also, I might be able to reduce the amount of sales tax by not spending too much money on goods and services. However, income taxes are compulsory that I could not reduce.

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The regressive sales tax refers to higher proportion of income is paid at lower levels of income. That is to say, low-income people have to pay higher proportion of income compared with high-income people. For example, if everyone has to pay 10% on the top of the regular sales price of a good or service, low-income people who spend 70% of their income on purchasing goods per month have to pay 7%. However, high-income people who spend 20% of their income on purchasing goods per month only need to pay 2%, which is vastly lower than 7%. Therefore, low-income suffer from heavy tax burden.

4. What would you prefer to do: pay a higher income tax or a higher sales tax?

Personally, I prefer to pay a higher income tax. To embark on, paying income tax is unavoidable, nobody is exception. Sales tax could be avoidable, as long as I choose to shop less to save more money. But a higher income may generate negative impact on low-income people, who gain low income, are probably under much pressure of living.

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4. I would like to pay a higher sales tax. Since I do not to pay a higher income tax, I would like to work harder and earn more money to pay the high sales tax. And this will encourage people to find work and lower unemployment. A indirect tax, such as sales tax may good be a good resource of government revenue and they might not encourage the consumption of demerit goods, but they can worsen income inequality.

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If everyone has to pay 10% on top of the regular sales price of a good or service, therefore it will affects the lower class or people with low income strongly. For example, for person who has income $50,000 in a month, when the person buy a good that costs $100 dollars, the person needs to pay $ 10 dollars for the tax. And, it seems that $10 is not very valuable to them. However, for a person who earns $1,000 in a month, $10 is very valuable for them. Therefore, a sales tax regressive because people with the low income have to pay higher percentage of their total income than people with high income.

4. What would you prefer to do: pay a higher income tax or a higher sales tax? What are the pros and cons of direct versus indirect taxes?

I would prefer to pay higher sales tax rather than a higher income tax. I prefer to do that because it will me think to buy the necessary things first and not spending too much on the other things that i don't need, so i will spend and consume less and save more money because of the low taxation on income.

Income tax will give big income to government, so the government could spend the money on trying to reduce the gap between the poor and rich. But this might make the labors become lazy and less willing to go work.

Sales tax is a regressive tax because it gives big disadvantages to people with low income. It makes people with low income have to pay bigger/higher percentage of their total income compare to people with high income. And this could make people become poorer.

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4. I would much prefer pay higher sales tax rather than high income tax as I then would have more leftover money because I wouldn't have to contribute a large part of my income through taxation. I would then be more selective about the goods and services I consume so that I may have the possibility of saving more money aside.

Income tax gives a higher percentage of money to the government which will be used for Government spendings, reducing the economic gap between rich and poor, but will make the working labor less willing to work.

Sales tax also add money to state's spending, but it also discourages the population from purchasing the more expensive goods.

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4. I would much prefer pay higher sales tax rather than high income tax as I then would have more leftover money because I wouldn't have to contribute a large part of my income through taxation. I would then be more selective about the goods and services I consume so that I may have the possibility of saving more money aside.

Income tax gives more money to the government which can be used for government spending and reduces the economic gap between earners in an economy, but at the same time it discourages people from working.

Sales tax also gives more money to Government spending, but it also discourages people from purchasing goods as the price is higher.

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It depends on the income of one, if one’s income is, let’s say 10000, when he/she purchases a good of $100, he has to pay $10 tax. However, if one’s income is 1000, $10 can be very valuable to he/her.

4.What would you prefer to do: pay a higher income tax or a higher sales tax? What are the pros and cons of direct versus indirect taxes?

I would prefer higher sales tax, because it would be easier to control my own purchase power, but it is hard to control my income.

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If the government charge 10% of the original value, it is still a regressive tax because it still put up a burden on families with low income coming in.

A richer family with an income of say around 100,000 or more will find sales tax not such a burden, especially that this amount is not exactly a lot for them to pay. However, for low income families, who earns 10,000 a month or less, the sales tax is an added financial burden as it will spend more of their money and save less. The difference of an amount of income may affect the level of burden for each family. Family with high income may fell that 10% on services and goods is low, but for low income family, it is a heavy burden for them.

4.What would you prefer to do: pay a higher income tax or a higher sales tax? What are the pros and cons of direct versus indirect taxes?

I would pay higher sales tax as I would be able to spend less of my money on taxes. The cons of paying higher income taxes is that I would send most of my money paying taxes, and less incentives of saving my money.

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2. I would prefer to pay higher sales tax rather than a higher income tax. The reason is that paying higher sales tax allows me to consume less and save more through my own scheme. However, contrary to indirect tax higher income tax doesn’t encourage us in saving as direct taxes are unavoidable, because households and firms are obliged to declare their full income to governments. Thus, indirect taxes such as GST and VAT allow people to have the choice whether they buy necessity and valued goods or spend more in higher luxuries to ensure them to have better standard of living.

However, sales tax contains significant disadvantages to lower income class people. As it is a form of regressive tax, it makes low income people pay a higher percentage of total income compared to high income; thus, makes low income person more poorer.

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• Although the percentage of sales tax out of income remains the same, the value that it holds differs according to different income groups. For instance, for low income groups, 10% of regular price, say $10 out of $100 as the sales tax, would mean a significant amount of spending if their income is $500 per month. However, for high income groups with the monthly income of $50000, $10 out of $100 would be the amount that can be easily spent without much consideration. Therefore, since the sales tax on goods remains fixed for everyone, people with different financial backgrounds have to pay the fixed price or fixed percentage of a sales tax. This makes a sales tax regressive.

4. What would you prefer to do: pay a higher income tax or a higher sales tax? What are the pros and cons of direct versus indirect taxes?

• Higher income tax would usually take higher percentage of money out of one’s income, and leave less opportunities for the individual to consider and choose among the options of saving in banks, investing capitals (funds, shares, etc.), saving for insurance or education, etc. This is directly associated with the psychological effects like pressure, instability and anxiety, being imposed on the individuals and thus limiting their choices of actions.

• However, higher income tax can be beneficial for the ones who are not interested in saving capitals and preserving their property. The individuals who have the tendency to spend as they earn, would benefit from having their incomes taxed rather than from the large sales they make. Also, often as a progressive tax, this would not require the low income group to sacrifice a large proportion of their holdings which affect their living. Moreover, by paying constant rates of tax, households will be able to evaluate their holdings effectively without random changes in their spending.

• Higher sales tax could be beneficial in general, for it takes only the small proportion of the money that the individuals hold. Also, this means one is responsible for his own spending and the sales tax that he has to pay, and thus he can control his own consumption or spending with flexibility.

• However, sales tax often entails the effect of regressive tax. Low income groups may have to sacrifice a large proportion of their income into their daily spending compared to the high income groups.

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