1. The City of Camelot, population 650,000, is facing a $6.7 million budget gap for next fiscal year. A variety of revenue measures have been suggested for closing the gap, including raising user fees (primarily at city parks and recreational facilities and events), implementing a small (perhaps 1%) wage tax, piggybacking a 3/4 cent sales tax onto the state?s current rate of 8%, increasing ?sin taxes,? or raising property taxes. A recent columnist in the local newspaper said, ?As a property owner, I?m tired of elected officials eying my pockets every time municipal coffers get bare.? You are Special Advisor to the Mayor and need to recommend one of the above options. Evaluate all of the options for the mayor, after first explaining & describing the standard revenue evaluation criteria.
Running head: REVENUE MEASURES
The Standard Revenue Criteria and the Choice of the Best Option
Progressivity Factor; a tax...
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