New IRS Ruling on Bank Acquisitions Imposes Major Federal Corporate Tax Cuts — And Will Hurt States Too

Source: Citizens for Tax Justice, Press release, November 7, 2008

In late September, while the major presidential candidates debated solutions for reforming the federal corporate income tax, a little-noticed ruling by the Internal Revenue Service (IRS) opened the door for widespread corporate tax avoidance by a few of the biggest, most profitable financial institutions in the country. The IRS ruling, which took Congressional tax writers by surprise, will almost certainly push the federal government — and many states — further into the red at a time when they can least afford it.

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