Monday, October 14, 2024
Thimmesch: A Future For The State Corporate Income Tax
Adam B. Thimmesch (Nebraska; Google Scholar), A Future for the State Corporate Income Tax, 78 Tax Law. __ (2024):
The state corporate income tax is a flawed tax instrument, but calls to eliminate that tax should be reconsidered. To start, a variety of legal and practical limitations on states’ taxing powers prevent states from offsetting the costs of removing that tax and from eliminating other resulting distortions in the market. In addition, both the design of the modern state corporate income tax and the modern economy have undercut states' abilities to drive local economic growth through the reduction or elimination of that tax.
Finally, the state corporate income tax may raise little revenue relative to other state funding sources, but the tax revenues are quite large in absolute terms. The state corporate income tax is far from perfect, but neither is the world without that tax. Instead of abandoning the tax, then, the Article argues that states should work to limit its defects and to secure that tax as a source of revenue into the future.
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https://taxprof.typepad.com/taxprof_blog/2024/10/a-future-for-the-state-corporate-income-tax.html