Week 1 DQ 2
1a). Different states have different sales tax rates and some states have no sales tax. Visit the web site of Tax Administration (www.taxadmin.org) to look up the state sales taxes. From this web site identify two neighboring states with and discuss the impact this tax difference would have on the supply and demand for goods and services in these two state. Add a graph if possible to support your answers(you can use MS Paint to draw the graphs; make sure to save them as JPEG or GIF files)
1b) What is the difference between real and nominal GDP? Does GDP accurately reflect our nation’s productivity? Explain why or why not? State | State Tax | Sales Tax | Sales Tax on food | Kansas | 5.7% | 5.7% | 5.7% | MISSOURI | 4.225 | 4.225% | 1.225% |

I have had the chance of living in both states; the state I presently live in is the state of Kansas. The State of Kansas just dropped the state tax rate from 6.3% to 5.7%. Now depending on what city you live sales tax can be higher mainly due to the fact that different cities are able to impose a higher amount of sales tax to bring more revenue in to the city its self. The City I live in imposes a sales tax of 1.1% on top of the current 5.7%. Along the border of the state of Kansas, Missouri Kansas residents will travel over to bigger cities in Missouri to purchase food because the sales tax on food in Missouri is much less than in Kansas. In the north east corner of Kansas around Atchison Kansas, in Atchison are having to pay 7.7% on sales tax the reason for this jump in the tax within Atchison was due to the differences in sales tax on food in Missouri was less therefore the demand on food was greater in Missouri because of the difference in taxes. When States have significantly different sales tax rates