Question: Suppose legislation were passed that abolished all state and local
Suppose legislation were passed that abolished all state and local sales taxes and replaced them with one uniform sales tax on all consumption including consumption of services. The federal government would collect the tax and then return the revenue collected to the state governments. Discuss the economic effects of such a national sales tax on work effort and saving as well as the changes in behavior that would result from moving to a national as opposed to state and local sales tax base.
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