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Why States Should Tax The Gilti, David Gamage, Darien Shanske
Why States Should Tax The Gilti, David Gamage, Darien Shanske
Articles by Maurer Faculty
A centerpiece of the 2017 federal tax legislation’s reforms to international corporate income tax rules is the new global intangible low-taxed income regime (or GILTI). In a prior essay, we argued that U.S. state governments should conform to GILTI. But might there be constitutional restrictions preventing state governments from doing so? This essay argues that state governments can constitutionally conform to the federal GILTI rules and thereby tax GILTI income as part of the states’ corporate income tax bases. However, in doing so, we explain that state governments will need to be attentive to background constitutional principles.
States Should Conform To Gilti, Part 3: Elevator Pitch And Q & A, David Gamage, Darien Shanske
States Should Conform To Gilti, Part 3: Elevator Pitch And Q & A, David Gamage, Darien Shanske
Articles by Maurer Faculty
This essay argues that the states should conform to the post-2017 federal tax law's provision for Global Intangible Low-Taxed Income (or “GILTI”). This essay is directed at state legislators and their staffs and presents the argument as succinctly as possible.
Our argument can be summarized in three sentences. First, states should conform to GILTI because there is significant evidence that profit shifting is substantially eroding their corporate tax bases. Second, GILTI is a tool for identifying shifted profits. Third, there are many legally and analytically sound ways to apportion GILTI income to a state.
We also - briefly - counter …
Why States Can Tax The Gilti, David Gamage, Darien Shanske
Why States Can Tax The Gilti, David Gamage, Darien Shanske
Articles by Maurer Faculty
A centerpiece of the 2017 federal tax legislation’s reforms to international corporate income tax rules is the new global intangible low-taxed income regime (or GILTI). In a prior essay, we argued that U.S. state governments should conform to GILTI. But might there be constitutional restrictions preventing state governments from doing so? This essay argues that state governments can constitutionally conform to the federal GILTI rules and thereby tax GILTI income as part of the states’ corporate income tax bases. However, in doing so, we explain that state governments will need to be attentive to background constitutional principles.