Which of the following are based on an ability to pay? Explain. a. State Y collects a

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Which of the following are based on an ability to pay? Explain.

a. State Y collects a sales tax of 5% on all purchases of goods and services.

b. State X collects a sales tax of 5% on all purchases of goods and services but gives low-income families a tax credit for sales taxes.

c. Students at State University are given free parking in designated lots. Faculty and staff members must pay $125 per year for parking at State University.

d. Barton City charges all customers a flat monthly rate of $10 for garbage pickup.


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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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