Double-Weighted Sales Factor for Alabama

13 Pages Posted: 26 Nov 2013

See all articles by William A. Raabe

William A. Raabe

University of Wisconsin - Whitewater - College of Business and Economics

Date Written: April 2, 2001

Abstract

Congress and the U.S. Constitution impose no single apportionment method that all states must follow. The states have wide latitude in developing their apportionment formulas.

The apportionment of business income for state tax purposes is a major consideration in maintaining the fairness of business taxation and encouraging business investment. This paper looks at the issues involved in deciding whether Alabama should change its apportionment formula to one that doubleweights the sales factor.

Keywords: apportion, Alabama, income tax, sales factor, double weight

JEL Classification: E62, H22, H25, H71, K34

Suggested Citation

Raabe, William A., Double-Weighted Sales Factor for Alabama (April 2, 2001). State Tax Notes, 2001. Available at SSRN: https://ssrn.com/abstract=2360261

William A. Raabe (Contact Author)

University of Wisconsin - Whitewater - College of Business and Economics ( email )

Whitewater, WI 53190
United States

HOME PAGE: http://billraabetax.com

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