Jurisdiction B's tax system consists of 6.5 percent general sales tax on retail goods and selected services.over the past decades , the average annual volume of sales subject to this tax was $500 million. The jurisdiction needs to increase its revenue by approximately $500 million each year to finance its spending programs.The taxing authorities are considering two alternatives: a 1 percent increase in the sales tax rate or a new 2 percent tax a net income of corporations doing business in the jurisdiction. Based on the recent economic data, the annul net income subject to the new tax would be $275 million. However, the jurisdiction would have to create a new agency responsible for enforcing and collecting the income tax. The estimated annual cost of agency is $5,00,000 jurisdiction B borders four others taxing jurisdictions, all of which have a general tax and two of which have a corporate income tax.. 1 Based on the static forecast, how much incremental revenue would Jurisdiction B raise under each alternatives? 2 Assume that the taxing authorities in Jurisdiction B want a dynamic forecast of the incremental revenue under each alternative. What additional facts would be important in making such a forecast and why