Quote:
Originally Posted by Illiniwek
I'm guessing that sales taxes in Philly will end up having a regressive effect, as people with cars and money will be shopping beyond the reach of the tax.
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Studies show the elasticity of a sales tax is 1:1. In other words, for every 1% you raise the tax, you get 1% less than expected.
Since we are raising the sales tax 14%, we will most likely only collect 86% of the expected revenue.