Question: This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume

This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales decined from $816 million to $729 million. In contrast, State Z raised revenues from its 5 percent sales tax by expanding the tax base to include certain retall services. The volume of services subject to tax was $88 million. Required: a. Compute the additional revenue raised by State A. b. Compute the additional revenue raised by State Z Complete this question by entering your answers in the tabs below. Compute the additional revenue raised by State A. Note: Enter your answers in dollors not in militons of dollars. This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, th volume of taxable sales declined from $816 million to $729 million. In contrast, State Z raised revenues from its 5 percent sales ta expanding the tax base to include certain retall services. The volume of services subject to tax was $88 million. Required: a. Compute the additional revenue ralsed by State A. b. Compute the additional revenue ralsed by State Z. Complete this question by entering your answers in the tabs below. Compute the additional revenue raised by State Z. Note: Enter your answers in dollars not in millions of dollars
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