Latest corporate tax giveaway blocked
The National Governors Association criticized the bill as a "federal corporate tax cut using state tax dollars." According to analysis done by the Center for Budget and Policy Priorities' Michael Mazerov, it would have redefined the way business activity is defined, and bar states from taxing many kinds of businesses they currently tax, for example:
- a television network would not be taxable in a state even if it has affiliate stations and local cable systems within the state that relay its programming;
- a restaurant franchisor like Subway or Dunkin’ Donuts would not be taxable in a state, no matter how many franchises it has there; and
- a bank would not be taxable within a state even if it hires independent contractors there to process mortgage loan applications.
It's over. This corporate raid couldn't stand an election season in full view.