West Virginians who live near the border with other states can shop on either side of the border. When a 6% food tax was imposed in West Virginia, if West Virginians bought food in West Virginia, their total cost was the price of the food plus the tax. If they bought across the border in states that do not tax food, the total cost was the price plus the cost due to the extra travel. Tosun and Skidmore (2007) found that West Virginian food sales dropped 8% in border counties when a 6% sales tax on food was imposed. Explain why. West Virginia eliminated the tax in 2013.
West Virginians who live near the border with other states can shop on either side of the border. When a 6% food tax was imposed in West Virginia, if”
by | Mar 12, 2022 | Uncategorized
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