Tax Reform: What the International Provisions Mean to the States

Alysse McLoughlin and Kathleen Quinn wrote this bylined article to examine how the new federal tax law may lead to state tax law changes. The authors called the law “quasi-territorial” in the way it taxes both foreign-source income and domestic corporate income earned through foreign branches, and said that many states will have to change their tax codes to reflect this, “although we also anticipate that the states’ responses to the federal changes will vary widely.”