Question

Explain changes in the U.S. economy that have made Public Law 86-272 partially obsolete. Provide an example of a company for which Public Law 86-272 works well and one for which it does not.  

Answer 1

Answer:

Public law 86-272 was confined in 1950 .It was intended for traditional organizations who sold tangible individual property .However,now a days a few states have received the idea of economic nexus which says that sale of intangible property will result into physical nearness and make income tax nexus . Also,Multistate tax commission has embraced the Factor Presence Nexus standard in 2002.

This approach expresses that if taxpayer in any of the accompanying criteria nexus is said to be built up .

i)Property of $ 50,000

ii)Payroll of $ 50,000

iii) Sales of $ 50,000

iv) 25% of all out property finance or sales

On the off chance that this standard will be maintained public Law 89-272 will get unessential.