A new administration refors a state's tax code.
Corporate tax was increased by 3%, allowing the value-added tax on consumer goods to be reduced by 5%. This had no net effect on the state budget as the two tax changes balanced each other out.
Use the passage to answer the question.
What is a likely effect of this change in tax policy?
(1 point)
High-income people will choose to leave the state
Nonprofits will become a larger part of ine economy.
Consumers in the state will choose to buy tewer things.
Financial institutions will be less likely to
Invest in the slaie s companies