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Article: How should a subnational corporate income tax on multistate businesses be structured?(Forum: state corporate income taxes)
- Article from:
- National Tax Journal
- Article date:
- March 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 National Tax Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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INTRODUCTION
Declining corporate income taxes as a share of total state tax revenues since the late 1980s, combined with a perception on the part of some that tax planning is growing rapidly and excessively (Fox and Luna, 2002), has refocused attention on the state corporate income tax (CIT). The attention is a little surprising since the tax provides only about nine percent of total business tax revenue and is dwarfed by business property and sales tax payments (Cline et al., 2003), but the corporate income tax has to some extent (and perhaps unfairly) become a lightening rod for concerns about tax planning and corporate abuses. The result is that more than 15 ...