In response to this year’s push by the General Assembly to weaken the state’s safeguards against corporate tax dodging, the NC Justice Center recently launched a petition asking the General Assembly to adopt a key corporate tax reform that would nullify many of the strategies some corporations use to avoid paying state corporate income taxes.

From the petition:

But here’s the good news: there is a simple way for our policymakers in North Carolina to crack down on corporate tax dodging. All they have to do is require corporations to pay taxes on profits earned in states where they do business. This common-sense idea, called “mandatory combined reporting,” could raise up to $100 million each year in North Carolina.

In a report issued earlier this year, the NC Budget and Tax Center described how large corporations are able to take advantage of tax shelters because most of them are structured as parent corporations that each own many separate subsidiary corporations operating in many states. In states without mandatory combined reporting, multi-state corporations are able to shift income earned in one state to related corporate subsidiary in a state without a corporate income tax or with special corporate tax exemptions. Read More…