Exempting Food Purchases from Sales Tax Is Consistent with the Ability-To-Pay

question 252

True/False

Exempting food purchases from sales tax is consistent with the ability-to-pay principle, although not necessarily consistent with vertical equity.

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Definitions:

Napa Valley

is a renowned region in the state of California, famous for its wine production due to its favorable climate and geography.

Metropolitan Areas

Include downtown city cores and their surrounding suburbs.

Demographic Transition Theory

A theory that describes the transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Industrialization

The process of developing industries in a country or region on a wide scale.