In the logic of consumption taxation, business purchases are exempt in retail sales taxation. Which of the following is not a reason for that exemption?

Question

Quizplus · Accepted Answer

All the options provided are indeed reasons for exempting business purchases from retail sales taxation. Taxes aim to avoid distorting business decisions (A), are designed to tax household consumption rather than business inputs (B), and should not discourage economic development (C).

In the Logic of Consumption Taxation, Business Purchases Are Exempt