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Did Michael Brown's Friend Dorian Johnson "Recant" His Story? No, He Did Not

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lawhawk8/21/2014 10:38:40 am PDT

Oh, and another problem with the Foul Tax. Most every state keys their own income tax on the federal income tax. They conform to the IRC (Internal Revenue Code), adopting the provisions, rules, regulations, and other federal guidance - with state-specific changes based on state preferences (like not adopting bonus depreciation or capital gains rules or net operating losses). This would force all the states that currently have an income tax to either enact their own tax provisions - matching what the IRC previously had, or force the states to pick up a new tax regime that doesn’t match what these states have done for decades.

If you run a multistate business (you know, like the Microsofts, Kochs, Costcos, Walmarts, etc.), that’s the worst possible scenario since you have some measure of consistency when everyone works off the IRC as a starting point, but if all of a sudden you’re not forcing each state to compute their income tax differently, they’ll take different approaches, and leads to vastly more complicated multistate tax situations. Tax lawyers would love it because it would mean more business at the state tax level, but that’s about all who’d benefit.

And as I noted above, some states rely more heavily on business taxes than others.