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Tax Law
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ALSO CALLED: Taxation
DEFINITION: In the U.S., NET FAIR, which is short for the New Economy Tax Fairness Act, is a proposed bill (S664) that would define clear standards by which a business or individual can be considered to have sufficient economic ties to a particular state or locality to justify taxation by that entity with the assumption that it could not be taxed by comparable entities elsewhere. (Such economic ties are known
Definition continues below.
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TAX LAW DEFINITION (continued):
as 'nexus' in legalese.) The bill was introduced in the 107th Congress on March 29, 2001 by Senators Herb Kohl of Wisconsin and Judd Gregg of New Hampshire. There are more than 7,600 taxing jurisdictions in the United States. Recent advances in technology, particularly the Internet, have made business between entities in multiple jurisdictions increasingly common. In some instances, two or more jurisdictions may claim that a transaction is subject to business activity (sales, use, or excise) tax. In the extreme, such a conundrum can prevent a business from attempting to sell to buyers in certain
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