Does Sales-only Apportionment of Corporate Income Violate the GATT?

Charles E. McLure, Jr. and Walter Hellerstein
Authors registered in the RePEc Author Service: Charles E. Mclure, Jr. ()

No 9060, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: There has been a pronounced change in the formulas states use to apportion the income of multistate corporations from one that placed equal weight on payroll, profits, and sales to one that places at least half the weight on sales, and eight base apportionment solely on sales. This paper, which is intended to stimulate further analysis and debate, rather than provide a definitive conclusion, suggests that sales-only apportionment may violate the provisions of the General Agreement on Tariffs and Trade (the GATT) that prohibits export subsidies.

JEL-codes: H2 H7 (search for similar items in EconPapers)
Date: 2002-07
Note: ITI PE
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as McLure Jr., Charles E. and Walter Hellerstein. Tax Notes, Vol. 96, No. 11 (September 9, 2002), pp. 1513-1520
Published as State Tax Notes, Vol. 25, No. 11 (September 9, 2002), pp. 779-86
Published as Tax Notes International, Vol. 27, No. 11 (September 9, 2002), pp. 1315-23
Published as CES/ifo Forum, Vol. 3, No.4 (Winter 2002), pp. 23-30.

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