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The Following Was Heard on a Primetime News Cast

Question 67

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The following was heard on a primetime news cast.
"The government has just increased the sales tax.This is unfair to consumers,particularly the poor,because budgets are already stretched far enough.It would have been much more fair for the government to have levied an excise tax on firms as a way of making big business give back to the community."
Explain why the person's argument is more than likely incorrect.Be sure to discuss whether the person has over or understated the effect of the tax on consumers and producers.

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The person's reasoning is incorrect beca...

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