Selected Articles On Current Problems in Taxation

Cover Selected Articles On Current Problems in Taxation
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To that price he adds 5 per cent as the tax which he then actually collects from the purchaser, although in this case the law levies the tax on himself. He adopts this procedure because it brings about simplicity and equality in the computation and collection of the tax, just as if the tax had been levied on the purchaser, as was the case with the ice-cream soda. He adjusts his price in competition with his rivals. The existence of the tax makes no difference to him as compared with his competi...tors who adopt the same practice.
However, all the manufacturers' taxes do not work thus simply. The manufacturer of basketball shoes is taxed 10 per cent if he calls them basketball shoes, but there is no tax if he calls them "sneakers. " The manufacturer of a hunting knife is TAXATION 83 taxed 10 per cent if he calls it a hunting-knife. He is not taxed at all if he calls it a sheath knife. The manufacturer of a billiard table is taxed 10 per cent, but there is no tax on a mantlepiece made alongside out of the same materials.


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