Six states cut corporate tax rates | Dump Trucks Charlotte NC

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Columbus Ohio Dump Truck Company Brief:

• Six of the 46 U.S. states that have held legislative sessions this year have cut corporate income taxes, the Tax Foundation said, citing action by lawmakers in Idaho, Iowa, Nebraska, New Hampshire, Pennsylvania and Utah. Coloradans will vote in November on a reduction.
• “The large revenue increases most states have experienced in recent years have proved fertile soil for rate reductions and structural reform,” the Tax Foundation said in a report. “The enhanced mobility facilitated by the pandemic has increased the role of tax competition, further nudging states in that direction,” according to the Tax Foundation. 
• “While recession fears may slow the pace of revenue-negative tax reform in particular in 2023, there remains an important role for both state tax relief and, just as importantly, structural state tax reform, which can be revenue neutral while still enhancing a state’s overall competitiveness,” the Tax Foundation said.

Dump Trucks Columbus OH Insight:

The tax codes of U.S. states – and their reliance on corporate income tax – widely vary.

For example, New Hampshire’s corporate income tax in 2019 generated 6.9% of its state and local general revenue — the most of any state, according to the Urban Institute. Yet the Granite State does not levy a sales tax and is widely considered one of the most “tax-friendly” states.

Every state levies a property tax and unemployment insurance tax, but several forgo one or more of the major taxes, including the corporate income tax, sales tax or individual income tax, the Tax Foundation said.

Nevada, South Dakota and Wyoming have not established a corporate income or individual income tax, although Nevada taxes gross receipts, according to the Tax Foundation.

This year Nebraska lawmakers voted to cut the top marginal corporate income tax to 7.25% from 7.5% effective Jan. 1, 2023, the Tax Foundation said. The rate is scheduled to annually fall an average of 0.33 percentage point until reaching 5.84% on Jan. 1, 2027.

Oklahoma this year became the only state to make permanent the full expensing of large capital investments by C corporations. Many states allow corporations to fully invest capital investments in conformity with the Tax Cuts and Jobs Act of 2017. Yet that federal provision will begin to phase out at the start of next year.

Beginning on Jan. 1, Pennsylvania will cut the corporate tax rate to 8.99% from 9.99% and annually reduce the levy by 0.5 percentage point until it hits 4.99% at the start of 2031, the Tax Foundation said.

“Although 14 state legislatures remain in session or have been called into special session, much — though not all — of the year’s columbus oh dump truck company on tax reform is likely behind us,” the Tax Foundation said.