• States competing to attract & retain workers , residents , businesses & investors
• Many states shifting towards consumption-based tax systems ( i . e . sales & use tax )
• States continue equalizing the tax treatment of goods versus services to increase tax revenue in an increasingly service-based economy
• States continue crafting limited-scope tax credits to encourage specific investment in their state
• PROS : decreasing individual and corporate tax rates as states can recognize increased revenue from sales and use taxes
• CONS :
Additional complexity for service providers where sales & use tax law change frequently and are different from state-to-state
States continue to broaden their definition , or lower their thresholds of what constitutes nexus to capture more businesses & service providers