State Taxation of Corporate Income.

Abstract The payment of taxes is an obvious and insistent duty. It must be equally obvious that with increasing governmental activities there will be an increase in the tax burden. Legislative bodies in their efforts to balance budgets, will have to look to all available sources for revenue. It is to be expected that they will rely more and more upon the income tax which has proved so successful in a large and rapidly increasing number of states. There are special problems involved in the taxation of incomes by states which are not encountered in the Federal income tax. One of these is the allocation of income from business crossing state lines to the different states having an interest in that business for taxing purposes. In an address by Ogden Mills, Secretary of the Treasury, before the Association of the Bar of the City of New York in April 929, 19392, it was stated that this was perhaps the most important problem involved in the use of an income tax by the states.