The Purpose of the Streamlined Sales and Use Tax Agreement

question 9

Multiple Choice

The purpose of the Streamlined Sales and Use Tax Agreement is to:

• A) prevent income taxation of interstate commerce if a company's only business within a state is solicitation of orders.
• B) encourage states to model their tax structures after the Federal tax system.
• C) phase out sales and use tax gradually.
• D) simplify and modernize sales and use tax administration.

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Definitions:

Transfer Payments

Payments made by the government to individuals without any expectation of goods or services in return.

Shifting

The process of transferring a burden, such as tax from one entity to another, or changing the position of something.

Excise Taxes

Taxes imposed on specific goods, services, or transactions, often aimed at discouraging consumption of certain items or raising revenue.

Government Hiring

The process by which government entities recruit and employ individuals to work in various public sector roles, affecting the size and efficiency of government operations.