Question

The sales tax laws of many states exempt the purchase of groceries and prescription drugs from tax. For example, the state government of North Carolina exempts most food (doesn't exempt prepared foods), prescription medicines and a lot of medical equipment.

Such exemptions are intended to improve the:

		Convenience of the tax
		Equity of the tax
		Sufficiency of the tax
		Neutrality of the tax

Answer 1

Such exemptions are intended to improve the Equity of the tax.

The explaination behind this is that non descretionary purchases such as foods and medicine reduce the purchaser ability to pay tax.