Poll tax

 

A poll tax is a tax that levies a set amount per individual. It is sometimes called a capitation tax. Even though, the poll taxes are not expensive as they are easy to compute and collect, they are difficult to cheat. However, poll taxes regarded as unpopular because the poor are forced to pay higher proportion of their income than the rich. It is the result of the regressive character of poll taxes. Additionally, the supply of people is not fixed over time- if a poll tax is imposed within a certain state a couple will choose to have fewer children. In 1990 England and Wales shift from progressive taxation based on property values to a single-rate form of taxation without respecting the ability to pay was instrumental in the demise of the Prime Minister.
Excise taxes are not determined by the value of the product being taxed. An excise tax is based on the quantity of the purchased product. It is common that excises on particular commodities are hypothecated what means the money gained from an excise tax levied on fuel is used to fund public transportation or the environment. A special form of hypothecation appears when an excise is use to compensate a party to a transaction for alleged uncontrollable abuse. The economists condemn that this tax taxes blindly those who make legitimate and illegitimate usages of the products.
The purpose of imposition of excises is to modify consumption patterns. The aim of a high alcohol excise is to discourage alcohol consumption in relation to other goods. Sometimes it is combined with hypothecation if the proceeds are then used to pay for the costs connecting with the alcoholism treatment. Similarly, this kind of taxation may be applied in, for example tobacco, pornography, etc. and it is called a sin tax. Vehicle tax duty is an annual tax known in the United Kingdom. Correspondingly, there is a carbon tax imposed in the US and it is a levy on the consumption of carbon-based non-renewable fuels such as petrol, diesel-fuel, jet-fuels and natural gas.