States May Use Income Taxes to Earn From Repatriated Dollars


Alysse McLoughlin said during a Federal Bar Association conference that states must take steps to account for the new federal tax law’s provision regarding repatriated income, but predicting how they will react or what form legislation will take is difficult. Ms. McLoughlin noted that when taxing foreign-income dividend distributions to individuals, most states provide a deduction or exclusion for foreign dividends.