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A GRADUAL REDUCTION OF THE SALES TAX ON FOOD IN VIRGINIA

Authors
Disciplines
  • Political Science

Abstract

The authors found that food retailers would incur sizeable incremental costs depending on the mix of labor and capital utilized if a dual tax structure was imposed. Thus, the tax savings to consumers then would be offset not only by the recoupment of the lost revenue by government, but also by the incremental costs incurred by the food retailers.

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