Does the source of taxable revenues make any difference

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Given the following information on State A and State B: State A has no state income tax but a high state sales tax. State B has a medium state income tax and a medium state sales tax. Both States receive the same tax revenue per capita. Does one state have an advantage over the other during recessionary times; during prosperous times. Does the source of taxable revenues make any difference?

Reference no: EM13976572

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