A sales tax is cumulative right through the production stage.
The reliance on glosses occurs in everyday applications of sales tax statutes by merchants, motor vehicle ordinances by motorists, leash laws by dog owners, and so on.
However, there was a tax system that relied heavily on income tax (with extremely high marginal rates), customs duties and excises and, after 1969, the sales tax.
While the rural income level is conserved under reduced public expenditures, it is being eroded by the sales tax increase, through a demand-induced decline in prices of basic grains.
In the short term, the urban sales tax generates an economic contraction and aggravates the distributional differences between cities and the countryside.
Debate over the draft sales tax was unprecedented for an economic-policy issue.
Thus, the forest conservation associated with a rising sales tax is driven by a general rural poverty increase.
We focus on the impact of broadening the base for a sales tax.
