Under PL 86-272, the Taxpayer Is Exempt from State Taxes on on Income

question 77

True/False

Under P.L. 86-272, the taxpayer is exempt from state taxes on income resulting from the mere solicitation of orders for the sale of stocks and bonds.

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Definitions:

Enumerated Power

Specific powers granted to the federal government by the Constitution.

Interstate Commerce

Economic, commercial, or transportation activities that cross state boundaries or involve more than one state, subject to federal regulation.

Equal Protection

A constitutional principle in the Fourteenth Amendment of the U.S. Constitution that requires states to apply the law equally and not discriminate against individuals or groups.

Executive Power

The authority granted to government executives, such as presidents or governors, to enforce laws and manage the administration of government.