Draws upon the sales tax and services tax to clarify issues related to the revenue, economic efficiency, equity, and administration and compliance effects of taxing services.

Argues that shifting to an indirect tax system (a national sales tax) will not necessarily reduce tax avoidance and tax evasion behavior by businesses and individuals, particularly if the tax rate is set high to maintain revenue neutrality. Lack of experience in administering a high-rate,...

This study examines business organizational form decisions as a source of tax base mobility. We posit that organizational form responses to state tax policy allow for an indirect means of exploring mobility through business tax planning. Using state-level IRS data for the years 1997–2008, we...

Technological advances have impacted the sales tax more than any other tax imposed in the U.S. Technology creates new problems and sales tax evasion and avoidance opportunities, but also may provide business and governments with the tools to solve them. We discuss how technological developments...

Identifies and examines state policy issues to be addressed in the taxation of electronic commerce. Argues for destination-based taxes, congressional action on nexus, a direct use rule for business purchase exemptions, and similar taxation of functionally equivalent activities.

Concerns over nonconformity of state tax systems mounted through the 20th century as the multistate presence of businesses expanded. Fearing federal intervention and the loss of state tax sovereignty, the Multistate Tax Commission (MTC) was established in 1967 to help promote uniformity in state...

Uses sample selection estimation techniques to identify systematic audit selection rules and determinants of sales tax underreporting. Though based on data from only one state (Tennessee), outcomes are useful in developing and evaluating audit selection results.

This paper provides an economic evaluation of the state corporate income tax (CIT) in an open economy environment characterized by highly mobile capital. We find little economic justification for the state CIT, but recognize that it is not likely to be replaced in the foreseeable future. The...