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Nov 29, 2022 · A majority of states that impose a corporate income tax have adopted the use of mandatory worldwide, or water’s-edge, combined reporting methods for unitary businesses. At the same time, historically separate-filing states are seeking to adopt combined reporting tax regimes for corporate taxpayers.
Aug 27, 2023 · Many of the taxes we pay today were created in the 1920s and 1930s, including the estate tax, gift tax, and Social Security taxes. Income tax rates used to apply to everyone based on income...
Apr 8, 2010 · Unitary combined reporting, income apportionment, and State tax jurisdiction can present surprising consequences for foreign corporations. As illustrated by Wisconsin, State unitary tax regimes can also produce constitutionally suspect results.
State reporting statutes may include domestic (US) related entities in a unitary group (known as a water’s-edge election or water’s-edge filing), or may require or allow inclusion of all unitary entities, both foreign and domestic (worldwide combined reporting).
Learn about the unitary state, the most common form of government in the world. Examples, pros, cons, and how it differs from a federation like the U.S.
The unitary business principle finds its roots in 19th-century property taxation, when the U.S. Supreme Court first ob-served that an integrated business should be taxed as one unit instead of separately accounting for its component parts.
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The United States imposed income taxes briefly during the Civil War and the 1890s. In 1913, the 16th Amendment was ratified, however, the United States Constitution Article 1, Section 9 defines a direct tax. The Sixteenth Amendment to the United States Constitution did not create a new tax.
