Group items tagged

This article shows an example of an excise tax that has been damaged firms. A new 2.3% ad valorem US excise tax on medical devices, is, in my opinion, a mistake. 1,170 jobs were cut from one company as a result, and production will be down. This means that fewer devices will be made at a higher price, and furthermore means that fewer of those who need the devices will be able to purchase them, and they will get them at a higher price.

A South African Politician has raised the tariff on chicken imports in South Africa. This is a pretty textbook example of tariff implementation as its goal is to support the country's "bleeding" chicken market. Since the tax has been raised by 8.75%, it is an ad valorem tariff.