Problem
Decide Which Tax Is Best Suppose that the Environmental Protection Agency (EPA) has determined that the sewer system in your town is inadequate and must be replaced. Your community will need to borrow $20,000,000 to build a new system. This loan must be repaid from tax revenues over the next 20 years. There is a debate over the type of tax that should be imposed to collect the needed money. One idea is to charge people an extra $1 for each thousand gallons of water they use. The other is to impose a city income tax and charge people 5 percent of their annual federal income tax payment. What principle of taxation is each of these proposals based on, and which would you support? Explain your answer.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.