Since falling real estate prices and a tough job market


In 2008, the sales tax in Cook County, Illinois, was doubled. One journalist speculated that the tax increase was enacted becasue government officials sensed that the tax base was more captive than usual, since falling real estate prices and a tough job market made it difficult for citizens to move. Examine this sitiuation through the lens of optimal tax theory. Is the increase in the sales tax efficient? is it fair?

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Finance Basics: Since falling real estate prices and a tough job market
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