Question

(TCO E) The City of Champions has a referendum that will go before voters to build the best football stadium in the world. The ballot calls for the voters to approve or disapprove a 6% sales tax increase to construct the new stadium. The stadium is estimated to cost $800,000,000. However, the sales tax increase will generate more than $1.1 billion dollars. The disposition of the excess funds is unclear. What standards of equitability apply in this case? (10 points) Describe each standard and explain why it applies and whether the standard has been violated. (20 points)

Need ASAP please.

Answer 1

A) I believe that the standard of equitability that applies to this case is according to taxpayers’ benefits from or usage of the public service (benefits received)

B) There are two general equity standards: (1) according to taxpayers’ benefits from or usage of the public service (benefits received) Horizontal Equity – citizens who have similar capability to pay taxes should be treated equally. (2) according to taxpayers’ capabilities to bear the burden (ability to pay). Vertical Equity – citizens having different capabilities to pay taxes should be treated unequally. I believe that both standards have been violated because there is an extreme excess of funds that is unclear. There is no transparency in why there is going to be more than $1.1 billion generated when the estimated cost of the stadium is only $800,000,000.