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In the great nation of Wakanda, newly elected government seeks for ways to raise tax revenue in order to provide subsidies to public schools in
In the great nation of Wakanda, newly elected government seeks for ways to raise tax revenue in order to provide subsidies to public schools in the nation. Politicians consider two plans. Under one plan, theyr tax all goods and services (universal sales tax) at uniform level of 3 percent of the value of the sales. Under another plan, they will impose tax on some categories of goods that amount to about onehalf of goods and services sold at the rate of 6 percent so that another half of goods and services remain untaxed. Both plans are estimated to rasie equal amounts of tax revenue. From economic point of view: what are advantages or disadvantages of each plan. From pureljir economic perspective, which plan should be preferred
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