For example, tax policy makers identify different types of business transactions and put each type in its own box subject to its own tax and rules for paying it. Buy a pencil and pay a sales tax, earn income repairing copiers and pay an income tax, make jet engines and pay a business tax, stay in a hotel and pay a lodgings tax, sell your house and pay a conveyance tax, etc.
So what should policy makers do when someone comes up with a new service or a new way to deliver an existing service, say using information technology to connect someone who needs a ride with a driver that wants to provide that service? Does tax apply to sale of the IT or the transaction it facilitates? Does either transaction fit into the current sales tax box or is it something entirely new, requiring new box? (And, to show that these transactions affect other policy areas as well, do the people who provide the rides work for the people who run the electronic platform that arranges the rides or are they independent contractors?)