Use the data in the spreadsheet below to complete the following tasks:
compute the compound average growth rate (CAGR) for personal income and each tax revenue source;
use the CAGR for personal income and the tax revenue sources to estimate the income elasticity of tax
revenue of each tax revenue source;
use the income elasticity of tax revenue measures to assess the vertical equity of each tax revenue source;
develop a revenue forecast for each tax revenue source for FY 2017-FY 2021 and briefly defend the method
used for the revenue forecast; and
examine the 2003 and 2008 cigarette tax rate increases and estimate the tax rate elasticity of cigarette tax
revenue.
Draft a memorandum to provide all the information required above to me.
Formatting:
Microsoft Word Document.
Three-page maximum, excluding cover page, references, graphs, and tables (if needed).
Single spacing.
1-inch margins on all sides of the page.
Justified text alignment.
Arial 11 point font.
Use tables if they are helpful in presenting the information. However, provide a sufficient explanation of the
information in any table or tables.
References in APA style
Memo cover page must be as follows:
TO: [Instructor Name]
FROM:
DATE:
RE: Tax Analysis.
Sample Solution