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This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume
This year, State A raised revenues by increasing its general sales tax rate from percent to percent. Because of the increase, the volume of taxable sales declined from $ million to $ million. In contrast, State Z raised revenues from its percent sales tax by expanding the tax base to include certain retail services. The volume of services subject to tax was $ million.
Requlred:
a Compute the additional revenue raised by State
b Compute the additlonal revenue raised by State
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the additional revenue raised by State A
Note: Enter your answers in dollars not in millions of dollars.
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