Knowledge Center

Wednesday, July 16, 2014

HMB's Marilyn Wethekam Quoted in Crain's Blog on Corporate Tax Inversion Trend

"Sure, tax inversions squeeze Uncle Sam. But what about Illinois?"

Excerpt from Crain's Blogs/Crain's Morning10, July, June 16, 2014

Joe Cahill on Business

Corporate inversions, those deals that shift a company's headquarters to a low-tax country, aim to reduce federal income taxes.

But what about Illinois? How would the loss of these corporate headquarters affect state income tax receipts?

In general, any action that reduces a company's federal income tax liability ought to cut its state income tax bill. That's because federal taxable income is the starting point for calculating Illinois corporate income taxes.

"If (federal taxable income) is smaller, Illinois is going to start with a smaller pie," said Marilyn Wethekam, an attorney specializing in state tax law at Horwood Marcus & Berk Chtd. in Chicago.

Sound simple enough? Well, it's not. Like anything involving taxes, it gets complicated pretty quickly.

To read more, please visit Joe Cahill on Business, Crain's Blogs.

Copyright 2014 Crain Communications, Inc.

 

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