1. Identify the important elements of sales taxation in your state (Arkansas). What governments levy general and selective sales taxes?…

1. Identify the important elements of sales taxation in your state (Arkansas). What governments levy general and selective sales taxes? Identify the following for the RST: What commodity sales are exempt? Are services taxed? What is the nominal rate? What are the brackets? Does your state (Arkansas) provide sales tax credits? In regard to selective excises: What selective excises are used? How are their bases defined? What rates apply? 3. The Bureau of Labor Statistics’ Consumer Expenditure Survey: 2007 gives the following data: Income Category                 Average Income                   Alcoholic Beverage            Tobacco Productsof Family                               before Taxes ($)                   Expenditures ($)                  Expenditures ($)First Quintile                       10,531                                   176                                         259Second Quintile                   27,674                                   272                                         337Third Quintile                      46,213                                   413                                         381Fourth Quintile                   72,460                                   506                                         371Highest Quintile               158,388                                    917                                         268         Analyze the likely vertical equity of selective excises on alcoholic beverages and tobacco products.7. Several states have declared sales tax holidays, in which the state does not collect sales tax on certain items for a short period of time. In most instances, the holiday has been for clothing and the period has been a week or 10 days in August the idea being to give a “back-to-school” discount as families get ready for the new year. However, states have gotten more adventurous with the idea in recent years, and have enacted or proposed holiday for hurricane survival supplies, gasoline, Energy Star appliances, and guns and ammunition. Analyze the idea of such holidays according to yield, equity, administration and compliance, and economic impact.