6.4k views
1 vote
How could raising a sales tax result in less rather than more revenue for particular state

User Omer Sagi
by
8.4k points

1 Answer

6 votes
If you raise taxes, the prizes increase and the purchase might decrease: less purchase means less tax revenue.

For example, imagine New York increases their tax for printed material by 50 %- people would just order their books from New Jersey!
User Steveax
by
7.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.