Answer to Question #64931 in Microeconomics for muhammad dain

Question

At least half a dozen states and cities from Florida to Hawaii now impose $2 to $7
surcharges on car rentals. These fees can amount to as much as a 30% tax on 1day
rentals.”
Explain why states and cities are tempted to tax car rentals at higher rates than
other goods and services.

Answer 1

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