Optimizing State Sales Tax: Key Findings and Recommendations for Economic Stability and Growth

• Sales tax is second-largest source of state tax revenue
• Base erosion threatens tax’s share of revenue
• Well-designed sales tax is stable and efficient
• Taxation of intermediate transactions can drive up consumer prices
• Broad definition of business inputs should be employed
• Sales tax base broadening should be explored carefully
• States can reduce compliance costs for remote sales
• United States consumption taxes are distorted compared to other countries

Source: taxfoundation.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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