10 Consumption Taxes

This chapter covers consumption taxes, which can be divided into two board categories:

1. General sales taxes: Generally speaking, those taxes cover all consumption goods with few exceptions (e.g., food). In the United States, retail sales taxes are widely used, whereas in the European Union, the value-added tax (VAT) is more common.
2. Excise tax: Those taxes apply to specific goods and can take various forms depending on the purpose of the tax.

We will cover the definition of the tax base as well as the applicable tax rates. An example of tax rates can be found through resources like the Federation of Tax Administrators: Tax Rates. Finally, the evaluation of sales taxes involves assessing their effectiveness and implications in the broader economic context.

There are also slides and a YouTube video associated with this chapter.