which tax, if either, is better for social surplus.Sales tax or Excise tax? Why?
Sales tax are taxes levied even on necessity items such as food clothing etcbut when you consider the case of excise tax it is only levied on specific goods such as alcohol fuel and tobacco which are considered not good for the environment and individuals where the the producers have to pay the tax and by shifting the tax to the consumers the prices will increase and in this regard it can be mentioned that excise tax increase the social surplus because these are the taxes on the goods that are not necessarily good for the individuals rather than sales tax which are levied on even necessities is on the whole.
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