Question

in an election debate, two candidates for governor are debating about whether to raise the general sales tax from 5 to 7 percent. candidate a argues that this would increase tax revenues, enabling the state to maintain essential services. candidate b argues that the tax would hurt retailers and consumers, slowing down the economy so much that it would decrease tax revenues too. what assumptions must the candidates be making in order to justify their position?

Answer 1

Candidate B contends that the tax would harm consumers and retailers, slowing the economy to the point that tax receipts would also be reduced.

What exactly is tax revenue?

Taxes are required payments made to local, state, or federal governments, whereas revenue is the money received by the government through taxes and other nontax sources. WHY THE CONCEPT IS IMPORTANT Taxes, like income tax and sales tax, are a regular occurrence in society.

How are revenues and income determined?

You should be aware that "revenue" refers to the whole amount of money a company makes before deducting any expenses when comparing revenue and income. On the other hand, "income" is determined by deducting corporate expenses like depreciation, interest, taxes, and other charges from revenues.

To know more about tax receipts visit :
https://brainly.com/question/28873444

#SPJ1