State sales tax policies vary widely, impacting household consumption and state economies.
State tax policies vary across states, leading to confusion about the intended purpose of sales taxes. Different states have different approaches to defining what should be taxed, resulting in major differences in tax structures. While some states focus on taxing household consumption directly, others have a less clear approach, especially when it comes to business purchases and untaxed services. Many states could benefit from discussing and clarifying the revenue goals of their sales taxes with lawmakers.