Canada is apparently becoming an attractive place to do business. This week Burger King announced plans to move its headquarters to Canada, via a merger with Tim Hortons. Other U.S. companies that have recently moved or...
- State of Celebration
State of Celebration
Same-sex couples have much to celebrate in the IRS's announcement today that it will allow all married same-sex couples to file jointly regardless of their state of residency, but it does raise questions for states whose tax code is tied to federal definitions of income yet prohibit same-sex marriage. My colleage Joe Henchman has a paper up describing the main issues at stake. There are 24 (or potentially 25 if New Mexico is included) states that will need to address the issue:
The states shaded red prohibit same sex marriage, and the ones with diagonal lines overlaid tie their tax code to federal definitions of income. The states that fall under both these categories are the ones that will need to address the conflict between their state tax system and the federal tax one before next year. (New Mexico's marriage statute is gender-neutral and neither expressly recognizes nor expressly prohibits same-sex marriage, so it's unclear how this ruling will affect the state.)
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.