Briana Lives in One State and Works in the Adjoining

question 198

Essay

Briana lives in one state and works in the adjoining state. Both states tax the income she earns from her job. Does
Briana have any relief from this apparent double taxation of the same income?

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Nonexcludable

A characteristic of a public good where no one can be prevented from using it.

Nonrival

A characteristic of a good or service whereby one person's consumption does not diminish the utility or availability for others.

Free-Rider Problem

A situation where individuals consume a public good without contributing to its cost, potentially leading to underproduction or depletion of that good.