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Evaluating Tax Policy Proposals
A city council needs to raise revenue for public services and is considering two options. Option A is to implement a 2% tax on the final price of all goods and services sold in the city. Option B is to implement a 25% tax on the final price of sugary drinks and fast food only. Evaluate the strengths and weaknesses of each option in terms of revenue generation, fairness to consumers, and potential impact on public health. Conclude with a recommendation for which policy the council should adopt, justifying your choice.
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Economy
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