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2022 State Business Tax Local Weather Index

Federal legislation now restricts the deduction of business curiosity, limiting the deduction to 30 percent of modified earnings, with the power to carry the remainder ahead to future tax years. Thirty-three states and the District of Columbia conform to the web interest limitation. Throwback and throwout guidelines for sales of tangible property add yet one more layer of tax complexity. Since two or extra states can theoretically lay claim to “nowhere” income, guidelines should be created and enforced to decide who gets to tax it. States with company income taxation are almost evenly divided between those with and with out throwback rules. Twenty-five states wouldn’t have them, while 23 states and the District of Columbia do.

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