With state lawmakers scrambling to boost declining corporate tax collections in recent years, the Tax Foundation has released a new “Background Paper” predicting that many states will reduce or even repeal their corporate income taxes in the coming decade.
The study concludes that in an age of increasingly mobile labor and capital, companies are more sensitive to state corporate tax burdens than ever. Rather than chasing away employers with increasingly aggressive enforcement of corporate tax laws, states should instead move toward more stable and less economically harmful revenue sources.
The press release on the study (a short summary) can be found in the “Press Room”.
