Combined Tax Reporting for Maryland Corporations Click HERE to Bring Up Full Post

Per the Daily Record's business blog, Senator Paul Pinsky (D-21) seeks combined reporting for Maryland corporations on their Maryland-based income.

I am not an expert on the comibined reporting debate, but I am familiar with two tools for moving profits into low/no-tax states while moving expenses into higher-tax states on paper for tax efficiency. One common way to do this is to set up a holding company in Delaware, a low-tax jurisdiction, to hold intellectual property that the parent company then pays out of high-tax state profits for licenses for trademarks, trade secrets, copyrights, etc. Another method is to set up a "captive REIT" or real estate investment trust in a low-tax state to receive rent paid from high-tax state operations. Others probably exist.

I would like to know more about the precise nature, the details, of the combined reporting regime sought by the famously progressive (and friend of fair ballot access laws) Senator Pinsky.


Longer portion of post goes here.