States Should Conform to GILTI, Part 3: Elevator Pitch and Q&A

94 Tax Notes State 121 (Oct. 14, 2019)

4 Pages Posted: 22 Nov 2019

See all articles by Darien Shanske

Darien Shanske

University of California, Davis - School of Law

David Gamage

Indiana University Maurer School of Law

Date Written: October 14, 2019

Abstract

This essay argues that the states should conform to the post-2017 federal tax law's provision for Global Intangible Low-Taxed Income (or “GILTI”). This essay is directed at state legislators and their staffs and presents the argument as succinctly as possible.

Our argument can be summarized in three sentences. First, states should conform to GILTI because there is significant evidence that profit shifting is substantially eroding their corporate tax bases. Second, GILTI is a tool for identifying shifted profits. Third, there are many legally and analytically sound ways to apportion GILTI income to a state.

We also - briefly - counter the standard objections to state conformity with GILTI.

For those wanting more policy analysis, please see this essay: Shanske, Darien and Gamage, David, Why States Should Tax the GILTI (March 4, 2019). 91 State Tax Notes 751 (2019). Available at SSRN: http://ssrn.com/abstract=3374987

For those wanting more legal analysis, please see this essay: Shanske, Darien and Gamage, David, Why States Can Tax the GILTI (March 18, 2019). 91 State Tax Notes, March 18, 2019, p.967. Available at SSRN: http://ssrn.com/abstract=3374991

Keywords: Global Intangible Low-Taxed Income, GILTI, State Tax Policy, Corporate Tax Policy

Suggested Citation

Shanske, Darien and Gamage, David, States Should Conform to GILTI, Part 3: Elevator Pitch and Q&A (October 14, 2019). 94 Tax Notes State 121 (Oct. 14, 2019), Available at SSRN: https://ssrn.com/abstract=3485377

Darien Shanske (Contact Author)

University of California, Davis - School of Law ( email )

400 Mrak Hall Dr
Davis, CA CA 95616-5201

David Gamage

Indiana University Maurer School of Law ( email )

211 S. Indiana Avenue
Bloomington, IN 47405
United States

HOME PAGE: http://www.law.indiana.edu/about/people/bio.php?name=gamage-david

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