You are a policy maker who is interested in increasing tax revenues in order to reduce the Federal budget deficit. One proposal that has been suggested is to increase excise taxes on certain goods. Some of the options suggested are:
- vacation travel such as cruises
- liquor and cigarettes
- theater and concert tickets
Based on your knowledge of elasticity of demand, which items would you choose? Explain.
Respond to the topic and to two other students’ posts by name. Please respond using critical thinking and good communication skills. Include references when necessary to explain your viewpoints.