Saturday, March 10, 2018
Wall Street Journal, Where Corporate Taxes Are Poised to Rise Because of Tax Overhaul: States:
The amount of income subject to corporate taxes on the state level will increase by 12% because of the federal-tax overhaul, which removed or limited tax breaks, according to a business-backed study [The Impact of Federal Tax Reform on State Corporate Income Taxes].
When the top federal corporate-tax rate was 35%, state corporate-tax rates ranging from 3% to 12% were relatively insignificant for many big companies. But now, with the federal rate at 21% and fewer breaks available, state corporate taxes are becoming increasingly important.
After the federal government limited deductions and changed foreign-tax rules late last year, state taxable income went up and state rates didn’t change.
The estimate that the state corporate -tax base will grow by 12% on average over the next decade comes from an Ernst & Young study conducted for the Council on State Taxation, a business group.