PART 2: STATE BUDGET Save As. Congratulation The federal budget has been approved, and some of your suggestions have made it in Unfortunately, as part of the budget process, the federal government decided to pull back some of the finding is typically provides to come states, including 2.5 billion dollars that it sed to provide to yours. Now give your recent experience stane legislators have asked you to consult with them as they attempt to make this new short tal in the budget There are two main proposan thuy dire considering to make up the shorttal: an increase in the state sales tax and implementing on mecine tax on the le of alcohol (ora! combination of the two. They ve provide you with the projection tools below. Haview them, and then awer the questions that follow Sales Tax $8.516999999 Billion State Sales Tax and Projected Revente Sales Tax Projected Table Sales Projected Tax Reverse 51271,420.071 58517000000 Excise Tax SO Billion Alcohol Excise and Projected uvenue - 23.0d Excise Tax SO Billion ExclTax Alcohol Tak and Projected oven Projected Tax Revenue Projected Un Bales Question: Some of the state legislators assert that the endlest way to make up the shortfal is just to raise the tax from 7% to 10% While the rathers to work out. what potential issues are they not considering that might affect their ple? Question. There is another group of legators who think that a 225 akcie tax on scholis a better solution. However, you've concerned about the impact that might have market price and market equilibrium. Explain your concern to your colleagues Question What is your final recommendation to the state? Should they raise the strement the excitax or some combination of bom? Bespecific and explain your reasoning