State and local officials are worried that the national government might impose a(n) ___ tax.

Question

Quizplus · Accepted Answer

State and local officials would be worried about a value-added tax because it would be collected at each stage of production from the manufacturer to the retailer, potentially increasing the cost of goods for consumers and creating administrative burdens for businesses. Excise taxes are also imposed on specific goods like tobacco or gasoline, but they would not be as concerning to state and local officials because they are already in place. Graduated, flat rate, and exchange taxes are not commonly discussed in the context of state and local concerns.

State and Local Officials Are Worried That the National Government