Question:
What are the Disadvantages of Indirect Taxes?
Author: go kysAnswer:
-Hard to put an actual Money Value onto the Negative Externalities - Value Judgments -If Demand is Price Inelastic, then Demand will not be Reduced by the Extra Cost of the Tax -Indirect Taxation will, usually, Increase the Cost of Production which will Reduce a Product's International Competitiveness -Firms may just Move Away, and Sell Abroad to Avoid the Indirect Taxation - This may do more Damage [Employment?] -Money raised via Taxation may not be Spent on Reducing the Effects of Their Externalities
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go kys![go kys](https://lh5.googleusercontent.com/-VcvAufixQC8/AAAAAAAAAAI/AAAAAAAAAAA/AMZuuclTgbVcwbkN34cKx-XDycscqf7VNg/s96-c/photo.jpg)