Although a sales tax hurts both producers and consumers,their losses are fully offset by the benefits created by the tax revenues.

Question

Quizplus · Accepted Answer

While tax revenues may fund important government programs and services, it does not fully offset the losses experienced by producers and consumers due to the sales tax. Some argue that sales taxes can actually discourage consumer spending and hurt economic growth in the long-term.

Although a Sales Tax Hurts Both Producers and Consumers,their Losses