Identify the tax issue or issues suggested by the following situation, and state each issue in the

Question:

Identify the tax issue or issues suggested by the following situation, and state each issue in the form of a question.
County M imposes a 1 percent tax on the gross receipts earned by firms operating within its jurisdiction. For the last year, gross receipts subject to tax totaled $400 mil-lion. The county government is considering raising the tax rate to 2 percent because it needs $400,000 additional revenue to improve its road system.