3. Problems and Applications Q3 Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not. Excluding food and clothing from sales tax is other items. because it alter the incentives to purchase food and clothing versus True or False: Excluding food and clothing from sales tax is less equitable because it benefits the rich more than the poor. True False

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
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Chapter16: Government Spends, Collects, And Owes
Section16.4: Taxation
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3. Problems and Applications Q3
Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not.
Excluding food and clothing from sales tax is
other items.
because it
alter the incentives to purchase food and clothing versus
True or False: Excluding food and clothing from sales tax is less equitable because it benefits the rich more than the poor.
True
False
Transcribed Image Text:3. Problems and Applications Q3 Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not. Excluding food and clothing from sales tax is other items. because it alter the incentives to purchase food and clothing versus True or False: Excluding food and clothing from sales tax is less equitable because it benefits the rich more than the poor. True False
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