The linked article deals with Maryland’s budget gap: but it’s applicable virtually all states. with revenue short-falls resulting from COVID-19.
States can start reclaiming lost tax revenues by repealing the “water’s edge” option, and by requiring combined reporting. Doing so would mean multinational firms no longer avoiding taxes on highly profitable U.S. sales.
Fully taxing the profits of multinational corporations would establish tax fairness, and generate revenues to fund each State’s most pressing need(s).
The Institute on Taxation and Economic Policy (ITEP) has determined that a Worldwide Combined Reporting approach would add $14.19 Billion per year of currently lost revenue to state budgets. A similar approach, Sale Factor Apportionment (SFA) applied at the Federal Level could generate revenue of upwards of $800 Billion over 10 years.Read the rest of the story HERE:
At www.capitalgazette.com
At www.capitalgazette.com
