Conclusion
There may be little doubt that apparent circumstances of duplicative taxation are on the rise, and with them, some measure of taxpayer discontent, to not point out taxpayer avoidance conduct. The query is what Congress can and will do about it. Congress has the facility to offer some measure of uniformity within the apportionment of state company earnings taxes, and within the project of tax revenues from worker earnings. Whether or not the advantages of such uniformity are definitely worth the inevitable political prices are one other matter completely. Previous federal forays within the space haven’t been significantly profitable. Nearly each tax knowledgeable regards the nexus limitation on mail order gross sales as misguided and ripe for repeal, and its earlier try and mandate a uniform UDITPA components succeeded solely in unifying states round a components totally different from the one it had proposed. Maybe (if it decides to intervene in any respect) that must be its intent: to develop a sufficiently unacceptable rule to convey wandering state legislatures into settlement on a standard components and definition of things. However the longevity of such an settlement, because the Moorman case exhibits, could be removed from sure. Because the final a part of the Article argues, the obvious results of uniformity and “equity” could also be simply that. When states are decided to gather the “proper” quantity of revenues from their residents and staff and companies, they will depend on quite a few totally different fiscal instruments. 

All the identical, apparent “double taxation” rankles in ways in which much less apparent burden shifting might not. Significantly on this political local weather, appearances might matter greater than substance and supply justification for larger obvious uniformity and the absence of specific duplicative taxation. However the path to obvious uniformity is not going to be straightforward. States, like nations, proceed to disagree over the right break up of tax revenues between market and origination jurisdictions. Even when, over time, the selection of components and issue definitions could be undone by rearranging fiscal methods, the preliminary decisions will decide which jurisdictions might be confronted with the necessity to make such rearrangements. It’s unlikely that any jurisdiction will willingly tackle the burden of such political and different prices and uncertainties. In the end the query is whether or not the sport is definitely worth the candle.

https://taxprof.typepad.com/taxprof_blog/2023/02/duplicative-taxation-among-the-states-a-problem-not-worth-solving.html