A general sales tax and a value-added tax have _____. a. a ...

[serike]

A general sales tax and a value-added tax have _____.
 
  a. a common tax base
  b. nothing in common
  c. rates in common
  d. investment as a tax base
  e. a and d

Question 2

Over a period of years, many European countries replaced their transaction taxes with a value added tax. Give two reasons why this was done.
 
  What will be an ideal response?

[karlss]

Answer to Question 1

a

Answer to Question 2

The first reason why this was done was because transaction taxes are inefficient because they tax the same good multiple times. The second reason this was done was to harmonize income tax rates among members of the European Union so one country would not have a government-subsidized advantage over the others.

[serike]

Thanks for the timely response, appreciate it

[bulacsom]

Gracias!