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:

Consumption

The use of goods and services by households, considered as the end component of economic activity where goods or services are utilized.

Vertical Equity

A principle of taxation that posits taxpayers with higher incomes should pay more in taxes than those with lower incomes, based on the ability to pay.

Tax Burdens

The total amount of taxes paid by an individual or entity, often expressed as a percentage of income or as an absolute amount.

Governmental Services

Services provided by the government to its citizens; these can include education, healthcare, and public safety.