TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Saturday, March 10, 2018

WSJ: State Corporate Tax Revenues Are Poised To Rise Because Of The New Federal Tax Law

EYWall 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.

http://taxprof.typepad.com/taxprof_blog/2018/03/wsj-state-corporate-tax-revenues-are-poised-to-rise-because-of-the-new-federal-tax-law.html

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Comments

Corporations make more money and the tax rate remains the same so they pay more taxes. How is this news??

Posted by: dunce | Mar 10, 2018 9:10:35 AM