In most states, there is no sales tax on food. Some people say that a consumption taxa

Question:

In most states, there is no sales tax on food. Some people say that a consumption tax—a tax on all goods and services—would be better. If all sales taxes are replaced by a consumption tax, what would happen to the relative price of food and haircuts and how would you change your purchases of food and haircuts? Which tax would you prefer?

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