Nexus, Throwbacks, and the Weighting Game
21 Pages Posted: 8 May 2006
Date Written: December 2004
This paper modifies a model proposed by Anand and Sansing (2000) to explain why states have chosen different formulas for corporate income apportionment. I demonstrate that nexus assumptions and allocation rules can have significant effects on the outcomes of the model, and are important considerations in analyzing the impetus for and effects of apportionment competition.
Keywords: apportionment, state corporate income tax, nexus
JEL Classification: H25, H73
Suggested Citation: Suggested Citation