The state has decided to increase funding for public education. They are considering four alternative taxes to finance these expenditures. All four taxes would raise the same amount of revenue. 1.sales tax on food. 2.tax on families with school-age children. 3.property tax on vacation homes. 4.sales tax on jewelry. (1) Taxes change incentives. How might individuals change their behavior because of each of these taxes?
The state has decided to increase funding for public education. They are considering four alternative taxes to finance these expenditures. All four taxes would raise the same amount of revenue. 1.sales tax on food. 2.tax on families with school-age children. 3.property tax on vacation homes. 4.sales tax on jewelry. (1) Taxes change incentives. How might individuals change their behavior because of each of these taxes?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter16: Government Spends, Collects, And Owes
Section: Chapter Questions
Problem 20AA
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The state has decided to increase funding for public education. They are considering four alternative taxes to finance these expenditures. All four taxes would raise the same amount of revenue.
1.sales tax on food.
2.tax on families with school-age children.
3.property tax on vacation homes.
4.sales tax on jewelry.
(1) Taxes change incentives. How might individuals change their behavior because
of each of these taxes?
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