You just won a contest and have been appointed State of CT Tax Commissioner (you might be asking, why did I enter such a contest? :)). Your primary goal is twofold: raise revenue and make the tax code more efficient. You have to decide which goods to tax, which goods to raise taxes on and which good to lower taxes. Consider your knowledge of elasticity, supply and demand. You need to close a $500 million budget gap for the State.

1. Medical services, electricity and fruits and vegetables are not taxed. Should you start to tax these? Explain your answer.