One of the major disadvantages of tariffs is that they raise the price of imports, leading to a decrease in consumer surplus. Tariffs discourage competition, leading to decreases in product quality. In addition, high tariffs may lead to trade wars between nations.
Tariffs may make local industries less efficient due to reduced global competition. They may also lead to trade wars as exporting countries counter with their own tariffs on imported products. When trading counterparts reciprocate with their own tariffs, it raises the cost of doing business for exporters. This situation may also compromise the quality of goods and services as industries look for ways to cut production costs.
A tariff refers to a tax imposed on products and services. Tariffs are used to control trade, because they increase the price of imported products, making them more expensive to the end consumers. A specific fee is imposed as a fixed levy based on the product. In addition, an ad valorem tariff is imposed based on product’s value.
The objective behind tariffs is to decrease demand for imports while increasing demand for domestic products. Governments may also impose tariffs to protect local industries from foreign competition, because consumers largely choose imported products or services when they are cheaper. Tariffs provide additional sources of income for the imposing country at the expense of consumers and foreign producers.Learn More
Import and export tariffs, which can be either ad valorem or non-ad valorem, are some of the ways that governments alter international trade to their advantage and regulate their economies. Ad valorem tariffs, which impose a customs duty on the value of a product or commodity, are the most common. Non-ad valorem tariffs are based on physical quantities and can be specific, mixed or compound.Full Answer >
Stipends used for educational study or research while pursuing a degree aren't taxable income, according to H&R Block. However, stipends used for living expenses by a nondegree student or received in exchange for delivery of services are typically taxable income.Full Answer >
The IRS deduction for people over 65 is the Standard Deduction for Seniors. This deduction applies to seniors aged 65 and older who do not itemize their tax deductions. Seniors who turn 65 at any time during the taxable year qualify for the deduction.Full Answer >
One can contact a Palm Beach tax collector by calling the Palm Beach County Constitutional Tax Collector's office at 561-355-2264. Other options for contacting the Palm Beach tax collector include filling out the online form on the agency's website or contacting the office by mail.Full Answer >