How could raising a sales tax result in less rather than more revenue for particular state

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21-09-2015
Social Studies

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How could raising a sales tax result in less rather than more revenue for particular state

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WorldCitizen WorldCitizen · Answer 1 · 2015-09-21T14:19:46+02:00

WorldCitizen WorldCitizen

21-09-2015

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!

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