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.
Answer to relevant QuestionsSuppose federal, state, and local governments in the United States were to engage in a massive campaign to deal with AIDS, drug abuse, and other health-related problems. The increase in government medical spending would ...The following data show how the marginal external benefit and marginal private benefit associated with a soil treatment agent to control Japanese beetles vary with the gallons of the control agent sold per year: Draw the ...The example of logrolling used in the text assumes that the transactions costs of vote trading are zero. Suppose instead that voters A and C have to incur expenditures equal to $60 per week to reach agreement on the ...A furniture manufacturer sells $500,000 worth of tables, chairs, and other items in a given year. The manufacturer earns a profit of $100,000 that year. His purchase invoices indicate that he bought $200,000 worth of lumber, ...Go to Table 17.1 and find the property tax rate for the largest city in your state. Is that rate above or below the national average? If it is above the national average, what effect on property values is likely? If it is ...
Post your question