Which of the following is a criticism of payroll or commuter tax?
A)It is only a long-term revenue growth opportunity.
B)It will encourage more businesses to leave a city.
C)It will increase the demand for services.
D)It will affect other tax collection measures.
E)It will prevent the state from allowing cities to collect local income tax.

Question

Quizplus · Accepted Answer

The criticism of payroll or commuter tax is that it will encourage more businesses to leave a city, as they may not want to bear the additional cost of the tax. This could lead to a decreased tax base and ultimately hurt the city's revenue.

Which of the Following Is a Criticism of Payroll or Commuter