What are two potential issues that may occur when there is a significant difference in sales tax rates between two jurisdictions or cities? Explain each.

Two potential issues might arise when there is a significant difference between the sales tax rates between two jurisdictions or cities.

First, consumers might try to avoid the taxes of one jurisdiction by shopping in a neighbouring one. This is called sales tax avoidance. In this case, consumers leave high-tax areas and make major purchases in low-tax areas.

The other potential issue is that businesses might also try to avoid such taxes.  Businesses might sometimes locate just outside the border of a high sales tax area in order to avoid being subjected to these rates. In both of these situations, implementing a high sales tax rate can backfire, making it more difficult for the jurisdiction to collect revenue.

it is the dominance of   the spanish language and roman catholic region in mexico, french being the official language of several african countries, and the existence of a western-style government in south asian countries