About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Jared Walczak & Erica York, GILTI and Other Conformity Issues Still Loom for States in 2020 1 (2019)

handle is hein.taxfoundation/gltiiss0001 and id is 1 raw text is: GILTI and Other Conformity Issues Still Loom for States in 2020 Jared Walczak Director of State Tax Policy FISCAL FACT No. 682 Dec. 2019 The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) nonprofit organization. @2019 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 * Even two years after enactment of the federal Tax Cuts and Jobs Act (TCJA), many states have yet to issue guidance explaining how they conform to key provisions of the law, particularly those pertaining to international income. * Twenty-one states and the District of Columbia conform to changes in the federal tax code on a rolling basis, while 15 have what is known as static conformity and two have rolling conformity for corporate, but not individual, income taxes. The remaining states with income taxes only selectively conform to the federal tax code. * Twenty-four states tax or potentially tax Global Intangible Low-Taxed Income (GILTI), of which 17 have issued guidance; in most cases, this represents the states' first significant foray into the taxation of international income. * State tax systems were not made to accommodate international income, and many of the resulting tax regimes give rise to serious constitutional questions. * Twenty-four states provide a deduction for Foreign-Derived Intangible Income (FDII), though seven states which currently tax GILTI do not. * When the federal tax code transitioned from a worldwide to a quasi-territorial system, deferred foreign earnings were deemed repatriated and taxed at a preferential rate, a provision captured in the tax codes of 14 states-often without the preferential rate. * Sixteen states conform to an important pro-growth element of federal tax reform, the provision providing for immediate expensing of investments in machinery and equipment. Another three states conform with partial addbacks. * States have delayed long enough. In 2020, policymakers should clear up any remaining uncertainty and use the TCJA, however belatedly, to better orient their states toward growth. 202.464.6200 taxfoundation.org Erica York Economist Key Findings

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most