Sales Taxation of Business Inputs: Existing Tax Distortions and the Consequences of Extending the Sales Tax to Business Services
27 Pages Posted: 11 Feb 2005 Last revised: 20 Dec 2016
Date Written: February 14, 2005
The authors examine the effect of sales taxes on business services and say that states should not extend sales taxes to those services. States should not tax business inputs, the authors say; businesses are already paying more than $100 billion in sales taxes on services, they calculate.
Keywords: sales tax, business tax, tax on services
JEL Classification: G30, G38, H00, H20, H25, H32
Suggested Citation: Suggested Citation