The arms race in sales tax

Though the US is expressing cautious optimism about the economy, particularly in the second half of 2015 and thereafter, any recovery will follow the traditional pattern of helping some sectors more than others. This is particularly true of state governments, which generally have faced tougher times...

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Bibliographic Details
Published in:Accounting Today 2015-09, Vol.29 (9), p.40
Main Author: McClure, Dave
Format: Article
Language:English
Subjects:
Budget deficits
Compliance
Deficits
Jurisdiction
Sales taxes
State court decisions
State government
States
Tax rates
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Summary:Though the US is expressing cautious optimism about the economy, particularly in the second half of 2015 and thereafter, any recovery will follow the traditional pattern of helping some sectors more than others. This is particularly true of state governments, which generally have faced tougher times in the past four years due to growing social obligations and a changing business environment. The Multistate Advisor observed at the outset of this year that 16 states -- from tiny Rhode Island to Illinois -- face substantial deficits. Where they can, states have attempted to use budgetary restraint in an effort to reduce spending to better match revenues with expenditures. But some federal initiatives related to immigration and health care, to name just two, have made this difficult. In addition to belt-tightening, the states have generally engaged in four strategies: 1. redefinition of nexus, 2. collection of taxes owed, 3. support for a national solution, and 4. increasing use of technology.
ISSN:1044-5714