SARA MILLER: Don’t limit state’s ability to fight tax loophole for corporations

More than two out of three of the state’s largest corporations pay zero state income taxes. For some corporations this is because they have not been profitable, but for others, it may be due to tax-avoidance measures.

Two bills making their way through the House and Senate (HB 799 and SB 2487) would limit the flexibility of the Department of Revenue to fight a popular tax loophole for multistate corporations. This loophole is not available to small, locally-based businesses or individual Mississippians and has been made illegal in a majority of states with a corporate income tax.

Several other states, like Mississippi, allow their department of revenue to fight these tax avoidance measures on a case-by-case basis. These bills would limit the Mississippi Department of Revenue’s ability to do that.

It is also important to note that while the bills would reduce tax collections, no fiscal note has been provided to the public to show the amount of the estimated loss of revenue. Fiscal notes provide information to policymakers and the public about bills that would reduce revenue. The estimated cost of bills that would reduce state revenue should be weighed against those of other state priorities like education and health care.

Read more here: http://www.sunherald.com/2014/03/10/5404396/sara-miller-dont-limit-states.html#storylink=cpy

-Sara Miller, Senior Policy Analyst