3 ms·

Corporate income tax is levied in 44 states. I'm not sure if any counties/cities have corporate income tax. Presumably if Apple et. al. have to pay federal co

Corporate income tax is levied in 44 states. I'm not sure if any counties/cities have corporate income tax. Presumably if Apple et. al. have to pay federal corporate income tax they'll surely have to pay the state corporate income tax as well.

prostoalex 11y ago
My understanding from reading this California FAQ https://www.ftb.ca.gov/forms/misc/1083.pdf https://www.ftb.ca.gov/forms/misc/1083.pdf is that only "income from sources within California" is taxable (and in case of global corporations they resort to some formula to calculate their fair portion), so repatriated cash wouldn't matter for local coffers - Cupertino (or Santa Clara County, or California) would have as much claim on income earned somewhere in Zurich, as Trieste has on an income earned off a cup of fresh Illy espresso brewed in Cupertino. Perhaps I'm wrong, or maybe California example is very different and not indicative of general picture. In any case, it seems that companies either register their headquarters in some "cooperating" states like South Dakota http://www.marketplace.org/2009/03/25/business/borrowers/sioux-falls-town-credit-built http://www.marketplace.org/2009/03/25/business/borrowers/sio..., or approach the states directly about making a special exception to the tax rules in order to win their business (like Tesla and their Gigafactory in Nevada, or Toyota moving to Texas, or Nissan moving to Tennessee). The game is even easier at the city level - cities will introduce special tax breaks for a 99 Cent store or a new gas station, leave alone a major Fortune 500 employer.