Answer Happy

The city leaders of Bridgepoint suffered a budget shortfall last
year. In their planning for the new fiscal year, they feel they can
raise the needed revenue by imposing a sales tax on the consumption
of the citizens of the community. They are particularly entranced
with the possible tax revenue that can be gained from a redeveloped
mall in the center of the city. The mall, a joint project between
the city and a developer, was rebuilt from the ruins of an
abandoned shopping center that had been an eyesore for many years.
The new mall serves many of the inner city residents who rely on
public transportation and live either below or at the poverty line.
The mall has been a huge success and has been hailed as the
vanguard of a new revived downtown shopping area. A sales tax,
however, would impact to a greater extent the many low- and
middle-income shoppers who shop downtown, for they would pay a
greater percentage of their income to this tax than wealthier
shoppers. Is a sales tax a “good move” for the city of
Bridgepoint?