In most states, there is no sales tax on food. Some people say that a consumption taxa

Question:

In most states, there is no sales tax on food. Some people say that a consumption tax—a tax on all goods and services—would be better. If all sales taxes are replaced by a consumption tax, what would happen to the relative price of food and haircuts and how would you change your purchases of food and haircuts? Which tax would you prefer?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Economics

ISBN: 9780135897478

9th Edition

Authors: Robin Bade, Michael Parkin

Question Posted: