Question: Dread Corporation operates in a high-tax state. The firm asks you for advice on a plan to outsource administrative work done in its home state

Dread Corporation operates in a high-tax state. The firm asks you for advice on a plan to outsource administrative work done in its home state to independent contractors. This work now costs the company $750,000 in wages and benefits. Dread’s total payroll for the year is $8 million, of which $6 million is for work currently done in the home state.

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