David Brunori will be in Las Vegas this week speaking at the Council On State Taxation annual meeting (Friday morning) with Doug Lindholm, Helen Hecht, and Richard Pomp. They are leading a debate/discussion on the most significant issues in state tax policy. I can't be there, but thought I would give my two cents.
I think some of the most significant state tax policy issues are:
- the imposition of sales tax collection obligations on remote retailers;
- expanding the sales tax base to services;
- whether states should ramp-up transfer pricing training/positions or join the MTC ALAS program;
- whether states should adopt tax haven legislation which allows them to cherry-pick the taxation of foreign income or simply adopt mandatory worldwide combined reporting;
- whether states should continue to enact unconstitutional legislation forcing taxpayers to go to court;
- whether states should continue to enact retroactive legislation;
- whether states should continue to enact legislation that benefits in-state taxpayers vs. out-of-state taxpayers (i.e., market-based sourcing, single-sales factor apportionment, credits and incentives).
What do you think are the most significant issues in state tax policy?