Question: Assume you work for a local municipality. Under what conditions is it tax advantageous for municipalities to undertake profit making ventures? Why dont we see

Assume you work for a local municipality. Under what conditions is it tax advantageous for municipalities to undertake profit making ventures? Why don’t we see more municipality operated activities? Can you think of some taxable business ventures currently operated by municipalities? Would the same arguments apply to other tax exempt entities such as universities, hospitals, and charities?

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