Which of the following is a way for states or local governments to raise revenues immediately? A raise the sales tax
B. raise the property tax
C. raise the state income tax
D. raise the corporate income tax
Please select the best answer from the choices provided
A
B
D

A. Raise the sales tax.

Explanation:

Sales tax is the amount of money that producers need to pay to the government every time they make a sale of their product. Since sales related to the income that the company generated, companies will always tried to increase their sales as high as they can.

Since sales tax is taken from the percentage of the sales, the amount of revenue that the government can take will also increase as the companies make more sales.

This is why increasing sales tax is considered an effective method if the government wanted to raise their budget immediately.

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