Should Tourism Taxes be Increased or Reduced and Why Assignment | Online Homework Help

•There is much disagreement if the tax burden on travel and tourism should be reduced, particularly on airfares.
•Proponents for reducing the tax say that as travel is a growing sector, it can provide jobs and economic activity, and the high tax burden is stunting growth.
•Opponents say that travel is a luxury product, hence people who can afford to travel can afford the tax, whereas people who cannot afford to travel can benefit from the additional tax revenue via the provision of public services, therefore any tourism tax should be increased.
•Moreover, travel is linked to severe environmental impacts (e.g. through airplane emissions) and should thus be taxed higher.
•Here is a snapshot overview of the debate:
•What do you think? Should tourism taxes be increased or reduced and why?



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