Corporations to foot state budget crunch bills?

I’m not sure what the ramifications of this might be, but I certainly approve of sticking it to corporations (particularly credit card companies, although they don’t make any mention of them specifically).

Basically, Maryland has outlawed an accounting practice that allowed companies to funnel income through Delaware-based holding companies (no taxes in Delaware) and is now offering them a deal on the penalties if they pay the back taxes and interest.

With so many state budgets in crisis, I wonder if legislatures across the country might try similar tricks.

If you believe that the state budget crunches are an intentional by-product of federal tax cuts meant to streamline state governments, this would be a pretty interesting bit of backlash.

Posted by KellyMc at December 2, 2003 5:31 PM