Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose legislation were passed that abolished all state and local sales taxes and replaced them with one uniform sales tax on all consumption including consumption
Suppose legislation were passed that abolished all state and local sales taxes and replaced them with one uniform sales tax on all consumption including consumption of services. The federal government
would collect the tax and then return the revenue collected to the state governments. Discuss the economic effects of such a national sales tax on work effort and saving as well as the changes in behavior that would
result from moving to a national as opposed to state and local sales tax base.
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