Do Tax Policies Affect Consumer Behavior?

First Name: 
Jessica
Last Name: 
Sanford
Major Department: 
Accounting
Thesis Director: 
Mary Hofmann
Date of Thesis: 
May 2009

Taxes have always been viewed as a necessary evil. In the dictionary, the word has two definitions. The first definition, which is a brief description of its purposes, states that a tax is “a sum of money demanded by a government for its support or for specific facilities or services, levied upon incomes, property, sales, etc.” The second definition can be used to portray how people feel about taxes. It states that a tax is “a burdensome charge, obligation, duty, or demand (Tax).”

Without taxes, a country cannot afford all of the services that make it a well functioning society. Living in a country that does not have the basic amenities such as Law enforcement, insurance, health care, and postal service is practically unimaginable for most of us. In the United States elections of 2008, topics such as education and healthcare became a major concern to voters. Some could not manage to pay for college, while others could not find the money to buy the medications they needed. If the government was able to raise enough taxes, it would not have to cut back on such important areas of the budget.