A local government could add a sales tax and use the new revenue to beautify the area around the business. This would help the business by attracting more customers due to an improved environment. However, the additional sales tax could hurt the business by increasing costs for customers, potentially leading to decreased sales.
Give an example of one way that a local government could pass a law that would both help a local business and hurt the same local business.(1 point)
Responses
A local government could add a sales tax and use the new revenue to beautify the area around the business.
A local government could add a sales tax and use the new revenue to beautify the area around the business.
A local government could make restrictive licensing laws so that the existing business would not have any new competition.
A local government could make restrictive licensing laws so that the existing business would not have any new competition.
A local government could remove the state sales tax, cutting helpful programs that the sales tax paid for.
A local government could remove the state sales tax, cutting helpful programs that the sales tax paid for.
A local government could ease licensing laws so that other new businesses could start up easily.
1 answer
1 answer