Single Sales Factor
How’d you like to change the way you compute your taxable income so that your state income tax bill drops 80 or 90 percent? All in the name of jobs, of course, except you don’t have to create—or even retain—any jobs. That’s Single Sales Factor, the outrageous deal some large manufacturers and mutual fund companies have lobbied for and won in 20 states, most recently New York and California. Not included is Mississippi, where Single Sales Factor use is limited to manufacturers who sell direct to retailers and consumers. Small companies that sell locally don’t save a nickel; it’s a windfall for the big boys. When Illinois adopted Single Sales Factor, the state’s revenue department estimated that just five big companies would get 63 percent of the tax-break dollars. See more here, and read up on how to research single sales factor and other tax formula changes here.
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