Suppose that the legislators in a particular state are choosing three strategies to raise revenue: (1) imposing
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Suppose that the legislators in a particular state are choosing three strategies to raise revenue: (1) imposing a progressive income tax; (2) imposing a sales tax on food; and (3) imposing a 1 percent tax on all earnings within the state. How do you think residents of the state in the upper, middle, and lower income groups would react to each of these proposals? Which of the three strategies do you favor? Which of the three has the greatest likelihood of being passed?
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Upper income groups would likely prefer the tax proposals in the fol...View the full answer
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Related Book For 
Economics Theory And Practice
ISBN: 9781118949733
11th Edition
Authors: Patrick J. Welch, Gerry F. Welch
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