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What is a Destination-based tax system?

A:

Destination-based corporate taxation relies on a practical business reality that value is practically established when a buyer is willing to pay for the product. This viewpoint doesn’t discount the academic economic theories about where value is produced. Rather it recognizes that taxing based on where the buyer/user actually resides is far less open to manipulation. Coupling a Destination-based corporate tax with a Sales Factor Apportionment protects American domestic companies.


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