Question

You own a grocery store in the city of St. Louis. As you read the paper this morning you discover that a proposal to fund a new football stadium in St. Louis includes raising the sales tax in the city of St. Louis by making it 0.5% higher for all sales within the city limits. Compose a letter to the editor of your newspaper to explain your point of view on this proposal. Make sure your letter addresses the specific method of funding, not just the general idea of a building a stadium.

Answer 1

To,

The editor,

City News, St.Louis.

I read that sales tax in the city is proposed to increased by 0.5% to fund new football stadium in a city. I oppose this proposal as I believe that there are other suitable methods to generate revenue for the same.

As we know that sales tax is a regressive tax and its burden is more on poor people as percentage spent is more as compared to rich people. Increasing sales tax will make them worse off. Income inequality will widen. It will also lead to inflation in the city.

In my opinion, govt. should give a contract to private party and ask to bear them costs of the same. Govt. can contribute 50 % and rest 50 % along with profit margin can be recovered through user fees. It also possible that govt. increases cess on income tax for this as rich people may be able to bear this.

I agree that building stadiums will enhance sports culture but I think money should be raised by govt. through alternate means rather than making poor worse off.

I request you to consider these views before passing the proposal.

Yours sincerely,

XYZ