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. Tax the income of vendors who do not have a physical presence in your state but sell to in-state customers online.

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 sales facilitators to remit the tax for online sales.