Which goods to raise taxes on and which good to lower taxes

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Reference no: EM131112249

You just won a contest and have been appointed State of CT Tax Commissioner (you might be asking, why did I enter such a contest? :)).

Your primary goal is two fold: raise revenue and make the tax code more efficient.

You have to decide which goods to tax, which goods to raise taxes on and which good to lower taxes. Consider your knowledge of elasticity, supply and demand. You need to close a $500 million budget gap for the State.

1. Alcohol, tobacco and gasoline are already heavily taxed. Should you raise these taxes? Explain your answer.

Reference no: EM131112249

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