Choosing Allocation Bases for Levying Taxes

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Possible methods of taxing include:
1.Sales tax on hotel rooms and restaurants: This is the most common method of taxing for the construction of a tourist site because the hotels and restaurants benefit directly from tourism.This taxing method is the same as allocating all the costs to the primary customers of the aquarium.
2.Property tax on businesses: This method allocates most of the costs of the aquarium to the businesses with the most expensive property.These businesses are most likely to be able to afford the additional tax.Not all businesses,however,will benefit from the aquarium.
3.Income tax on individuals: Once again,this method allocates costs to the individuals who are most likely to be able to afford the additional tax.But not all of these individuals will benefit from the aquarium.
4.A non-tax method of covering the cost of the aquarium is to issue a bond to pay for the aquarium and then use proceeds from ticket sales to pay the principle and interest on the bond.

Choosing Allocation Bases for Levying Taxes

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Choosing Allocation Bases for Levying Taxes

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