 Questions
 Economics
Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue. Is this plausible? Explain.
I would think not, because wouldn't the increase in sales tax shut out some people who do not believe the price for goods is worth the cost of an additional percentage of tax applied to the price.
I agree with thinking.
In addition to people simply lowering their consumption of goods subject to sales taxes, other behavioral responses will occur. People will shift and purchase more nontaxed goods or services. (every state exempts something from their sales tax base). Further, people will cross state lines and purchase goods and services in other states. Finally, the higher the rates, the more noncompliance there likely will be.
 👍
 👎
 👁
 ℹ️
 🚩
Answer this Question
Related Questions

math
sale tax in the state of florida is 7% tiffany purchased a coat that was marked at $35 how much was her total bill including tax? A)$2.45 B)$32.53 C)$35 d)37.45

Chem
The first principle energy level is called the: A Principle one state B Ground state C Atomic state D Hundâ€™s state B?

Algebra
An item has a listed price of $70. If the sales tax is 6%. How much is sales tax (in dollars)? 70*.06 $4.2 $4.20?

Finance
Nico Trading corporation is considering issuing longterm debt. The debt would have a 30 year maturity an a 10 percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of 5 percent of face value. In addition, the firm

Math
If someone could help me with these 6 questions, that would be great, Thank you. :) 5.) Chris wants to buy a cell phone that costs $215.00. His parents say Chris must raise 35% of the money himself. How much money much Chris raise? A.$705.00 B.$75.25

Social studies
1. Which situation was affected depending upon whether a state was admitted as a free state or a slave state? A: Representation in congress B: Number of supreme court justices C: Amount of Western land available for settlement D: Existing treaties with

Chemistry
An electron is excited from the n=1 ground state to the n=3 state in a hydrogen atom. Which of the following statements are true? Correct the false statements to make them true. A. It takes more energy to ionize (completely remove) the electron from n=3

Math
Jenny bought scrapbook supplies for $70.75. She paid $5.66 in sales tax. What was the sales tax rate on the supplies? If necessary, round your answer to the nearest tenth.

statistics
The weight of a small Starbucks coffee is a normally distributed random variable with a mean of 410 grams and a standard deviation of 10 grams. Find the weight that corresponds to each eventa. A.Highest 30 percent b. Middle 70 percent to c. Highest 90

math
In January 2009, the state of Nevada was facing a budget deficit of $1.5 billion. The population of the state was approximately 2 million. How much would each person in the state have to contribute to pay this deficit? please send me the answer to
Still need help?
You can ask a new question or browse existing questions.