Senior Director of State Fiscal Research
Outdated sales taxes are keeping states from fully competing in a 21st century economy. As they emerge from the recession, many states are recognizing the urgent need to invest in highly competitive education systems, modern transportation networks, and a range of other innovative public initiatives that will form a strong foundation for future economic growth. But states won’t be able to make these investments without modern revenue systems.
A key step in the right direction is to modernize their sales taxes, which account for nearly a third of the tax revenue states collect. Currently, most state sales taxes are stuck in an era before the Internet and before services became so important to the economy. As we explain in our new paper, states can modernize their sales taxes by:
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