FALLS CHURCH, Va., June 21 /PRNewswire-USNewswire/ -- States' reliance on retail sales taxes should be good news for those who value efficient taxation, but widespread taxing of business purchases impedes efficiency and hides the true burden of these taxes, according to the inaugural issue of "Marginal Impact," a new bimonthly column for State Tax Notes by tax experts at the American Enterprise Institute (AEI).
"Despite their image as consumption taxes, state and local retail sales taxes are actually imposed on a large volume of business purchases, resulting in significant economic inefficiency," writes Alan D. Viard, an AEI resident scholar who will serve as lead author of the column.
"Whether reform is pursued within the sales tax context or outside it, a reduction in the taxation of business purchases should be a high priority in efforts to improve state and local tax systems," he added.
To read the inaugural issue of "Marginal Impact," go to Tax Analysts' Web site at www.taxanalysts.com.
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SOURCE Tax Analysts