Some states exclude necessities, such as food and clothing, from
their sales tax. Other states do not.
•Discuss the merits of this exclusion in terms of both
efficiency and equity.
•Consider North Carolina, does it exclude necessities, why or
why not?
•As with all things, one decision can lead to another. Once
necessities are excluded, “necessities” must be defined. Research
the tax definition of “necessity” in North Carolina (or another if
your state does not exclude) and evaluate it.