Question

6. Problems and Applications Q6 Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a 10,000 percent tax on certain hollow-tipped bullets. True or False: This tax would generate a lot of tax revenue because of its high rate. True False Why might Senator Moynihan have proposed it? To discourage the use of hollow-tipped bullets To boost the manufacturing industry of hollow-tipped bullets To raise revenue to support law enforcement

Answer 1

Answer: The answer is given below

Explanation:

True.

It is true that Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a 10,000 percent tax on certain hollow-tipped bullets.

False.

The high rate of the tax doesn't guarantee that it will bring about a large revenue. It should be noted that due to the rise in the tax rate, the revenue of the citizens will start to decrease. Here, we are even talking about a tax rate of 10,000 percent, this is a very high rate and can even lead to the tax revenue to almost be at zero level.

Senator Moynihan have proposed the tax rate in order to discourage the use of hollow-tipped bullets. He believed due to the high rate of tax, this will discourage people from purchasing it and hence lead to reduction in crime rate and other social vices associated with gun killing.