TAX 9866 Lecture Notes - Lecture 46: Double Taxation, Butler Brothers
Document Summary
Case brings up two points is the formula itself fair? is there something inherently wrong w/ formula. Ex: if formula was look @ sales and property and payroll and pick highest of three that would be inherently wrong formula (double taxation) inherently inconsistent. Aiight formula fair, but did it do justice to tp. Very rare that formulas are thrown out by court as being unconstitutional. Under state law, provisions say if regular % is too low/high, then govt + tp can complain//compromise. Ruling: underwood ends up paying 47% of tax in ct. Ppl dont like british beer in america. Comp is losing $ in ny but making $ overseas. So nys says the pie is the entire company and basracklaf. Bas says, you"re turning ny loss into ny profit. A state can turn a state loss into a profit by looking at entire company not just local company. Now looking @ it three factor formula (massachusetts formula)
