This year, State A raised revenues by increasing its general sales tax rate from 5...
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Accounting
This year, State A raised revenues by increasing its general sales tax rate from percent to percent. Because of the increase, the volume of taxable sales declined from $ million to $ million. In contrast, State Z raised revenues from its percent sales tax by expanding the tax base to include certain retail services. The volume of services subject to tax was $ million.
Required:
Compute the additional revenue raised by State A
Compute the additional revenue raised by State Z
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