Sales tax incentives for economic development: why shouldn't production exemptions be general?: An article from: National Tax Journal

This digital document is an article from National Tax Journal, published by National Tax Association on September 1, 2001. The length of the article is 5508 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: Principles of sales taxation hold that production input purchases should be exempt for efficiency and burden transparency. State legislative politics collides with principles. Rather than providing general exemption, states encourage economic development through special preferences for businesses making certain purchases, although some offer wider general production exemptions than others. States do not provide broad exemptions because law-makers focus on taxing final sales of things without understanding the consumption base intent of the sales tax, because they like the political safety of hidden taxes and apparent avoidance of burden on individuals, and because they prefer taxes more likely to be borne by non-residents.

Citation Details
Title: Sales tax incentives for economic development: why shouldn't production exemptions be general?
Author: John L. Mikesell
Publication:National Tax Journal (Refereed)
Date: September 1, 2001
Publisher: National Tax Association
Volume: 54 Issue: 3 Page: 557(11)

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