The referenced link provides a copy of TEI’s submission that was provided earlier this year, as it is timely to address the numerous (and sometimes retroactive) changes that states are enacting to align with the US Tax Act enacted December 22, 2017.
The impact on public companies, from adopting state changes, and then sometimes amending such adoptions based on legislative challenges, is a daily / weekly review to incorporate all changes into a company’s effective tax rate through deferred tax impacts. TEI suggests a future deduction, over a number of years, to offset negative impacts on current earnings and minimize tax rate volatility.
Aside from legislative changes, there will be additional legal challenges as some states are trying to step beyond the boundaries of collecting a fair tax by including a portion of income and disallowing 100% of the deduction on the new Tax Act changes.
The article is well written and hopefully results in some states adopting some ameliorative measures.
Click to access 2018.02.14%20-%20SALT%20Policy%20-%20Deferred%20Tax%20Relief%20-%20FINAL.pdf
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