The Importance Of Tax Policy In The United States

Great Essays
CROSS-BORDER SHOPPING FROM WASHINGTON STATE TO OREGON STATE
Introduction
Tax policy is one strategy that states have to increase their competitiveness. From the 50 states nationwide, only five states do not impose sales tax or have a 0% sales tax rate; they are Alaska, Delaware, Montana, New Hampshire and Oregon. Without sales tax, people can buy in these five states without spending extra money on tax and they can have extra ‘money’ for saving or spending on other goods. Compared to some other states, they mostly charge ‘double’ sales taxes, which is state sales tax and local sales tax.
This non-sales tax policy, for sure, brings some changes or impact to these states as well as their neighboring states. Oregon and Washington are the states
…show more content…
For that reason, the neighboring states of Oregon could lose some of their potential income from sales tax. In order to find out the state’s loss or potential gain from sales tax due to cross-border shopping of residents in border counties, in 2014, the Washington Department of Revenue conducted research. They collected and examined data from 14 counties located in eastern and western border counties.
Based on the study’s result, it has been proven that, only in the fiscal year of 2014, the state government of Washington lost approximately $ 193 million and the local government of Washington lost approximately $ 54 million from sales and use tax due to tax evasion by cross-border shopping. Those tax values are the result of $ 3 billion taxable retail sales. Significantly, 84.54 % of that total loss was from western border counties, which directly border with Oregon, and again, Clark County had the highest number of revenue loss from sales tax. The following table provides detailed information regarding the loss or potential gain estimate of taxable retail sales, state sales tax and local sales tax per
…show more content…
In contrast to business in Washington State border counties, retail businesses in Oregon are probably one of the many parties in the state, which get positive impact of cross-border shopping trends from Washington State. The more people come to shop in their stores, the more profit will the business get. Moreover, if the businesses have more income, more profit, it means the more business income for the state.
Cross-border shopping to Oregon State of residents from Washington State can bring multiple benefits for Oregon economics condition. Just like the domino effect, the more costumers come, the more workers that shop needs to service the customers. Thus, the more job opportunity will open and it will reduce the number of unemployment. From the Oregon State standpoint, if people work and get salary, the state can gain income from people’s income tax because personal income tax contributed around 70 % of the overall tax

Related Documents

  • Superior Essays

    The Commerce Clause is found in Article I Section 8, of the United States Constitution and was the original grant of power to Congress by the people to regulate interstate commerce. The clause is short and simply states “Congress shall have the power to regulate Commerce with foreign Nations, and among several States, and with the Indian tribes” (The U.S. Constitution, 1788). Though the language seems clear in its meaning, in the 240 year history of the United States the clause has been interpreted and its powers expanded by the United States Supreme Court to permit federal appellate review of matters ranging from religion and to gambling and everything in between. More recently, the Commerce Clause has been used as a federal vehicle to allow…

    • 1280 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    No one ever expected for sugar sweetened beverages to become a threat to human health. The article Ounces of Prevention-The Public Policy Case for Taxes on Sugared Beverages is a depiction of the growing worries of experts in public health; Kelly D. Brownell and Thomas R. Frieden manifest the importance of increasing the taxes on sugar sweetened beverages in order to generate a decrease in consumption, promoting people to make a wise selection to reduce the rate of obesity. The ascending consumption of sugar sweetened beverages is presented as the “largest driver of the obesity epidemic”. Imposing an excise tax may be a solution to this preventable problem. Demanding taxation on sugar sweetened beverages will produce a revenue.…

    • 1535 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Marijuana has been an increasing issue since its production was discovered in the 1600s from the hemp plant. Marijuana is made out of the dried flowers and leaves from the hemp plant. Since the 1600s, many states have been torn between the idea of marijuana being just a plant and harmless, and marijuana being a drug that causes substance abuse and is linked to many crimes. Some of the first federal laws against drugs were 1952 Boggs Act and 1956 Narcotics Acts which enforced that if a person was caught with marijuana in their possession they could be sentenced for a minimum of 2 – 10 years and a fine of $20,000. In 1996 California became the first state to legalize marijuana for medicinal use for patients who suffer from illnesses such as AIDS,…

    • 778 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Pragmatic Approach to Texas's Immigration Introduction The Wall Street Journal's article Texas's Immigration Choices illustrates their agreement and support for Texas's Governor Rick Perry and his position on immigration and border state control. The author has stated, “We think Mr. Perry's positions reflect those of a border state executive taking a pragmatic approach to the economic realities of immigration.” Although Governor Perry's approach is just and has some practicality, it is not appropriately pragmatic and needs to be adjusted. Approach of Practicality In the issue of immigration, the author points out that additional security measures such as more fences or barriers will not solve the issue of illegal immigration.…

    • 680 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Saver Act Case Study

    • 1211 Words
    • 5 Pages

    Today, the Court reverses both rulings of the Pennsylvania Supreme Court. First, the Court will address the property issue. The Saver Act does not comply with the Fifth Amendment or Fourteenth Amendment. The Court needs to return to a more classic reading of the Public Use Clause. The Pennsylvania governments’ seizure of land falls under the public benefit, not the public use.…

    • 1211 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Berkeley Drinks Less Soda

    • 1249 Words
    • 5 Pages

    With her article “Faced With a New Tax, Berkeley Drinks Less Soda,” published in The Upshot of the New York Times on August 25, 2016, health care reporter Margot Sanger enters a fierce debate about the impact of the soda tax on the consumption of sugary drink. Since 2014 when the tax first went into effect in Berkeley, California; attempts to impose the tax have been a matter of public controversy, and this is what motivated Sanger to produce this piece. The story’s “Kairotic moment,” as referred to in Chapter Eight of Writing Arguments (WA), is the new study of the tax in California, which “adds to the evidence” that taxing sugar-sweetened beverages is not the main reason for the reduction of it’s consumption (A3). Throughout the article,…

    • 1249 Words
    • 5 Pages
    Superior Essays
  • Superior Essays

    One of the major hot button topics for the 2016 election is Immigration Reform. Discussions of building walls, sending illegal immigrants “home”, and abolishing birthright citizenship have all been tossed around as resolutions. While the other side reminds us how America was founded on the principle of opened doors - a land of freedom and opportunity. They argue that the majority of immigrants and undocumented workers do not hurt society as much as they enhance it, culturally and even economically. It is widely known that the majority of undocumented workers in the U.S. are here for one reason – to work.…

    • 2176 Words
    • 9 Pages
    Superior Essays
  • Improved Essays

    Transport and utility prices may be high in an attempt to convince people to use less energy and carpool or use public transport more. Housing may be higher if renters and land owners believe areas are more desirable, which would cause them to increase their prices of renting or selling to an individual. Healthcare is the same between the two states, which could be because healthcare is more nationally monitored than any of the other factors, and therefore has little change…

    • 1176 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Proposition 64 Case Study

    • 632 Words
    • 3 Pages

    As well at it is a very difficult matter due to the use of marijuana on the federal level being illegal, compared to the state level. Recently in the Pacific Coast Business Times there was recently are article discussing the current business issue with California passing proposition 64, which passed the law for the use of medical marijuana. In this article the main focus addressed with…

    • 632 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Unauthorized Immigration

    • 706 Words
    • 3 Pages

    The indication shows that in the long run, immigrants do not decrease native employment rates. Some suggestion proposes that in the short run, immigration may slightly cut native employment, because the economy takes time to adjust to new immigration. Importantly, this effect fluctuates according to the broader economic environment. In specific, when the economy is growing and the labor market is adding jobs, new immigration makes enough jobs even in the short run and even to cause no harm to the net employment of native-born workers. But during economic declines, things do not adjust as quickly.…

    • 706 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The intention of this legislation was to regulate commerce and control the fluctuating market in California; however, since a majority of the raisins produced in Raisin Proration Zone No.1, this law would indirectly regulate interstate commerce through the state of California. The United States Constitution bars the regulation of interstate commerce at the state level in Article I, Section 8, Clause 3, leaving all authority of interstate commerce to the federal government. This should mandate that federal law preempts state law, and that the authority of interstate commerce is exclusive to the federal…

    • 1198 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Jessica Welch GOVT.2306.04 September 14, 2014 Interdependence of State and Federal Governments Taxation System Federal and State government relations in the United States have ranged from cordial to adversarial over the years. The constitution differentiates the roles of both governments with clarity and vagueness in equal measure. Whereas the clarity has brought about smooth interdependence, the gray areas have often led to conflicts that at times inevitably end up in court. One such case is the South Carolina v Baker (485 US 505, 1988) in which the twin issues of federal exemption from state taxation and state exemption from federal taxation were being thrashed out. It is important to explore the full extent of the influence of these tax regimes on the interdependent nature of state and federal government relations.…

    • 433 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Camarota, Steven A. "Immigration and an Aging America." Public Policy & Aging Report (2012): 1-26. Print. The author wrote this article for the general public, intending to educate tax-payers about illegal immigrations and its harms to the national economy. The paper focuses on how children of illegal immigrants are draining resources from several school districts.…

    • 979 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    In Washington, the second state to legalize, overall crime decreased by 10.0%, there were $250 million collected in sales, and $70 million in tax revenues. Washington is also expected to see $1 billion in tax revenues over the next four years. Oregon recently legalized marijuana in 2015 and they have already collected $60 million in sales and $15 million in in tax revenues (Crombie 2016). By legalizing marijuana, all states can…

    • 1398 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    US Taxation System

    • 814 Words
    • 4 Pages

    Understanding the US taxation system The US tax system is setup on both the federal and the state level. There are several taxes which the people of US have to face they are income tax, capital gains, sales tax. The federal tax and the state tax are two different taxation systems, where the state tax has other divisions too under the various states payment system. Each state has its own taxation system which is different from the other states and the state does not interferes in the taxation matters of the other states and the government too does not interfere in the state affairs.…

    • 814 Words
    • 4 Pages
    Improved Essays