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Conversely, not all cuts in VAT are passed on in lower prices. VAT consequently leads to a deadweight loss if cutting prices pushes a business below the margin of profitability. The effect can be seen when VAT is cut or abolished. Sweden reduced VAT on restaurant meals from 25% to 12.5%, creating 11,000 additional jobs. [20]
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A 10% tax is imposed on liquor sold for off premises consumption, 10% on restaurant meals (including carry-out) and rental cars, 18% on parking, and 14.5% on hotel accommodations. Portions of the hotel and restaurant meals tax rate are allocated to the Convention Center Fund.
The federal government estimated that it would raise $9 billion in excess revenues over the following five-year period. However, only two years after its imposition, in August 1993, at the behest of the luxury yacht industry, President Bill Clinton and Congress eliminated the "luxury tax" citing a loss in jobs. [6]
Ohio residents who qualify for Supplemental Nutrition Assistant Program (SNAP) benefits receive their payments according to the same schedule every month, based on the last digit of their case ...
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