Using Research Problem 2 found in Ch 24 in the textbook, prepare an e-mail (using a Word document), which you will submit to me discussing your research as requested in the problem.

Use internet tax resources to address the following questions. Look for reliable web. sites and blogs of the IRS and other government agencies, media outlets, businesses, tax professionals, academics, think tanks, and political outlets. I need the links that you use to answer problem 1and 2.

Research Problem 1. Pick two of the following provisions that currently do not exist. in your state. If your state does not levy a sales/use tax or an income tax on corporations, review the rules of a neighboring state Send an e-mail to your instructor, listing pro and con arguments for the state to adopt the provisions. a. Exempt "green" technology from the apportionment weight for the property factor.

b. Subject song and movie downloads to the sales/use tax.

C. Allow an income tax credit for 20% of the cost of in-state construction projects that are substantially completed within the next 18 months.

d. Establish income tax nexus using the factor presence nexus standards of the multistate Tax Commission.

e. Add an income-tax "nexus team" to find the taxpayers operating in your state but based in Ohio, Illinois, or Arizona.

f. Adopt the definitions and other rules of the Streamlined Sales Tax Project.

g. Allow an income tax credit for 25% of the wages paid to newly hired employees and contractors who work in the tech and pharma industries.

h. Apply a tax on S corporations operating in the state equal to 2% of the entity's gross receipts.

i. Convert the corporate income tax to a tax on gross receipts in an effort to tax the profits of passive investment companies owned by in-state parent entities.

j. Broaden the definition of sales/use tax nexus so as to force sellers or marketplace facilitators to remit the tax for online sales.

Research Problem 2. For your state and one of its neighbors, find the following income tax rules. Place your data in a chart, and e-mail your findings to your instructor.

a. To what extent does each state follow the rulings of the Multistate Tax Commission?

b. Does the state adopt pertinent changes to the Internal Revenue Code? If so, as of what date?

c. What is the highest income tax rate for corporations?

d. Is the tax effectiveness of a passive investment company limited in some way? Has the state adopted the Geoffrey approach (see footnote 20 ) to the taxation of income from intangibles? Explain.

e. Does the state apply entity-level income taxes for S corporations, partnerships, and LL.Cs? if so, what are the terms of those taxes?