What is an indirect tax?
An indirect tax is levied on a goods or services transaction and can be reflected in prices.
Definition, calculation and mechanism
Value-added and excise taxes are examples. The seller remitting tax and the party bearing its economic burden can differ. Pass-through depends on how supply and demand respond to prices.
Interpretation, examples and limits
Distributional effects depend on spending patterns and exemptions. Compare bases and coverage as well as rates. Rules differ across countries.
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