Select one option: The fictional city of Springfield recently instituted a plastic bag tax. The city government assumed the total number of plastic bags used at retail stores would remain roughly the same and estimated the tax increase would raise approximately $20 million in revenue. However, the tax only raised $15 million because many Springfield residents started to bring their own bags to the stores. The city government overestimated the revenue impact of the plastic bag tax increase because it used (Static / Dynamic) revenue forecasting which assumes taxpayer behavior will not change. Static Dynamic QUESTION 6 Taxpayer 1 has $100,000 of taxable income from wages and pays an ordinary tax rate of 35%. Taxpayer 2 has $100,000 of taxable income from long-term capital gains and pays a tax rate of 15%. This example illustrates a violation of: horizontal equity vertical equity