Question

Eugene owns a house and land in a middle-class neighborhood. he is upset that the mayor has increased the sales tax to fund public school programs. as discussed in the text, eugene should not be upset because:

Answer 1

Eugene should not be upset because HIS PROPERTY VALUE HAS INCREASE. Sale tax refers to the consumption tax imposed by the government on the sales of goods and services at the point of sale. An increase in sale tax will  automatically increase the value of the land and the house that Eugene has in that area. If he sells the land later or rent out the house, he will make more money from the sale.