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States Can Improve the Yield of the Sales Tax by Broadening

Question 11

Multiple Choice

States can improve the yield of the sales tax by broadening the base to include services and thus make the tax more equitable as upper-income individuals are heavier users of services. Which of the following examples is not an example of taxing a service?


A) A tax when you repair of your automobile
B) A tax when getting your hair cut
C) A tax on the cost of having a tattoo applied to your arm
D) A tax on the cost of buying cigarettes from a convenience store

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