Closing the Digital Divide in State Taxation: A Consumption Tax Agenda

Tax Notes State, Vol. 98, November 30, 2020

SMU Dedman School of Law Legal Studies Research Paper No. 505

8 Pages Posted: 22 Mar 2021 Last revised: 1 Apr 2021

See all articles by Orly Mazur

Orly Mazur

Southern Methodist University - Dedman School of Law

Adam B. Thimmesch

University of Nebraska College of Law

Date Written: November 30, 2020

Abstract

This article addresses how and why states should modify their current consumption taxes to better apply to transactions that occur in the digital realm. The article starts by addressing the practical and theoretical justifications for states to expand their taxes to those transactions. It then provides a roadmap for that reform and notes several potential sources of guidance for states. Specifically, the article's suggestions are focused on (1) how to best expand the state tax base, (2) addressing the sourcing of digital transactions, and (3) the administrative and legal challenges that the suggested reform proposals could create.

Keywords: state tax, tax policy, digital tax, consumption tax

JEL Classification: K34

Suggested Citation

Mazur, Orly and Thimmesch, Adam B., Closing the Digital Divide in State Taxation: A Consumption Tax Agenda (November 30, 2020). Tax Notes State, Vol. 98, November 30, 2020, SMU Dedman School of Law Legal Studies Research Paper No. 505, Available at SSRN: https://ssrn.com/abstract=3787052

Orly Mazur

Southern Methodist University - Dedman School of Law ( email )

P.O. Box 750116
Dallas, TX 75275
United States

HOME PAGE: https://www.smu.edu/Law/Faculty/Profiles/Mazur-Orly

Adam B. Thimmesch (Contact Author)

University of Nebraska College of Law ( email )

103 McCollum Hall
P.O. Box 830902
Lincoln, NE 68583-0902
United States

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