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Friday, March 30, 2012

postheadericon Uncertainty and unpredictability in state corporate income taxes

Taxes are the price we pay for a civilized society. But few Americans realize the scope and breadth of the taxes businesses pay and how uncertain and unpredictable that tax burden has become.

Most Americans would be shocked to learn that the 50 states have 50 different sets of standards for determining when an out-of-state corporation is subject to a state’s corporate income tax. These rules are so vague and unclear that costly litigation is often unavoidable. It is deplorable -- embarrassing even -- that the most advanced and sophisticated economy on the planet labors under such a confusing, uncertain and unfair system. 

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