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If the government taxes goods by an additional 1%, is that 1% inflation?
by mensetmanusman 1y ago
If the government taxes goods by an additional 1%, is that 1% inflation?
- breadwinner 1y agoIf the price goes up then yes.
- tnt128 1y agoNo. Tax is on the cost. If the good sells for $100 and cost $10. Then 10% additional tax increase the cost to $11. If the vendor decides to keep the same profit, then the price goes up by $1, which is 1%
- tempera 1y ago[dead]