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WHAT BEHAVIOR ARE THEY HOPING WILL OCCUR, DUE TO THE TAX? WHAT DO THEY WANT PEOPLE TO DO? Read each tax proposal and explain the policy goal (citizen behavior) you think the state is trying to achieve with each tax policy. 1. Online purchases within the state’s borders are subject to sales tax, just like purchases in any other store. POLICY GOAL:

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Final answer:

The state's policy goal for taxing online purchases is to ensure competitive equality between online and physical retail stores and to bolster state revenue for public services.

Step-by-step explanation:

The policy goal behind taxing online purchases within a state's borders is to level the playing field between brick-and-mortar stores and online retailers. The government hopes to encourage fair competition by ensuring that online stores don't have a tax advantage over physical stores. By subjecting online purchases to sales tax like any other in-store purchase, there is an incentive for consumers to potentially shop locally rather than exclusively online, which may also support local businesses and the state's economy.

Furthermore, applying a sales tax to online transactions helps increase state revenue, which can be used to fund public services and programs. It also reflects the current economic environment where e-commerce has become a significant part of consumer habits, and thus states need to adapt their tax laws to capture this source of revenue efficiently.

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