Double Weighting the Sales Factor Effectively Decreases the Corporate Income

question 164

True/False

Double weighting the sales factor effectively decreases the corporate income tax burden on taxpayers based in the state, such as entities with in-state headquarters.

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Definitions:

Administrative Differences

Variations in the organization, procedures, or policies between different businesses, governments, or institutions.

Liability of Foreignness

The disadvantages or additional costs that firms operating outside their home countries incur, compared to local firms.

Natural Resources

Materials or substances that occur in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.

Liability of Foreignness

The challenges and costs associated with operating in a market outside of a company's home country, including cultural differences and unfamiliar regulatory environments.