Question
Phoenix is considering adopting a 5% tax on recreational marijuana sales. This tax will be in addition to the 16% excise tax on these sales
Phoenix is considering adopting a 5% tax on recreational marijuana sales. This tax will be in addition to the 16% excise tax on these sales levied by the state government and the applicable sales tax. All revenues raised by the 5% Phoenix tax will go towards community colleges in the city. Evaluate this policy using the tax evaluation criteria discussed in your class (Equity, Efficiency, Revenue Yield/Elasticity, Administration, Political Feasibility, Tax Incidence/burden]. In your answer be sure to 1) address each of the five criteria 2) identify those you believe to be most important in this case 3) make a policy recommendation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started