Question

Suppose your state collects a sales tax, but a bordering state does not. A number of people cross the border each day in order to shop without paying sales tax. What must state officials consider when thinking about how to react to this situation?

Answer 1

Answer:

Explanation:

There are many factors that state officials should consider with regards to this situation such as what items are being bought, travel costs the individual is incurring, but most importantly how much are these purchases stimulating the state's economy. If many people are doing this, it means that a lot of money is being spent within the state which ultimately stimulates the economy as more shop owners are making sales and in term have more money to spend.