6.1 Taxation
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Last updated 9:02 PM on 4/27/23
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4 Terms
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Direct taxation
paid directly to the government (e.g. income tax, corporation tax)
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Indirect taxation
paid to the government through a third party (e.g. VAT)
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Specific taxation
a fixed amount is charged per unit of a particular good, no matter the price
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Ad valorem taxation
charged as a proportion of the price of a good