Companies in Limbo as States Adjust Taxes to Federal Overhaul
Businesses across the United States are paying greater attention to state taxes, which have become a bigger share of their total tax liability, the Wall Street Journal (June 11, Minaya) reports. While the federal corporate tax rate decreased to 21 percent under 2017's federal tax overhaul, state tax rates have remained unchanged. To project a business-friendly environment, many states are expected to cut their corporate tax rates in line with the federal reduction. "But it isn't always easy," the newspaper points out. "Minnesota state lawmakers and their governor ended a legislative session last month in a stalemate, unable to agree on a bill that updates the state tax code to reflect the federal overhaul." How to apply a new federal provision that levies a one-time tax to corporate profits stored overseas was among the sticking points. Companies headquartered in the state, including General Mills and 3M Co., are caught in the middle with hundreds of millions of dollars at stake.
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