Question

(1)The sales tax treatment of Internet or mail-order purchases is quite controversial, as discussed in the section. Think about the products you have purchased using the Internet or by mail order in the recent past and roughly how much you spent. Does your state have a use tax? How much did the opportunity to avoid sales tax influence your decision to purchase over the Internet or by mail order? Do you think that companies that sell through the Internet or by mail order should be required to collect state sales or use taxes on purchases? If not, then what other methods might states use to collect these taxes?

(2) Please discuss at least three of the four potential roles for intergovernmental grants in our fiscal system Your answer should include examples for each of the roles you are describing.

Answer 1