States actually can’t apply any tax regime they want if it violates the interstate commerce clause. As the GOP argued against Obamacare, a mandatory penalty is a tax. This SCOTUS would 100% agree with that assessment. If a state implemented eminent domain on a business, which is state nationalization on par with every corrupt despotic regime in history and economoc suicide, that’s close enough to a penalty for leaving the state that this SCOTUS would gladly invalidate it
Trump investments were likely still headquartered in NY, so your point doesn’t really apply here. Also, sales tax applies to where a sale taxes place. Your best bet would be a sales tax on specific factors that catch tech companies. But just like Ireland and the EU, tax havens can be an office of 10 people in a company of 1000.
Look, thus is a hard problem to solve. Policy people have been trying for decades. These people employ armies of lawyers to get them out of every problem, and they proudly leverage states against each other, and this is what that looks like. Don’t give the bastards what they want, and they wany sympathy they don’t deserve.
States can and do drive whole categories of business out of their state. Self-service gas stations in NJ, wine stores in PA,.etc etc
And while you’re right that the distinction between a penalty and a tax is mere semantics, it’s not something that would keep CA from just imposing very high taxes on the rich or NY from continuing it’s “we tax NY source income for all”.
Trump having his NY corp sell all of its NY assets to a FL corp would still keep those NY assets and revenue subject to NY taxes, same as any other FL corp doing business “in” NY, though it would move the non-NY revenue to a different treatment.
If your business is incorporated in New York State or does business or participates in certain other activities in New York State, you may have to file an annual New York State corporation tax return to pay a franchise tax under the New York State Tax Law.
States actually can’t apply any tax regime they want if it violates the interstate commerce clause. As the GOP argued against Obamacare, a mandatory penalty is a tax. This SCOTUS would 100% agree with that assessment. If a state implemented eminent domain on a business, which is state nationalization on par with every corrupt despotic regime in history and economoc suicide, that’s close enough to a penalty for leaving the state that this SCOTUS would gladly invalidate it
Trump investments were likely still headquartered in NY, so your point doesn’t really apply here. Also, sales tax applies to where a sale taxes place. Your best bet would be a sales tax on specific factors that catch tech companies. But just like Ireland and the EU, tax havens can be an office of 10 people in a company of 1000.
Look, thus is a hard problem to solve. Policy people have been trying for decades. These people employ armies of lawyers to get them out of every problem, and they proudly leverage states against each other, and this is what that looks like. Don’t give the bastards what they want, and they wany sympathy they don’t deserve.
States can and do drive whole categories of business out of their state. Self-service gas stations in NJ, wine stores in PA,.etc etc
And while you’re right that the distinction between a penalty and a tax is mere semantics, it’s not something that would keep CA from just imposing very high taxes on the rich or NY from continuing it’s “we tax NY source income for all”.
Trump having his NY corp sell all of its NY assets to a FL corp would still keep those NY assets and revenue subject to NY taxes, same as any other FL corp doing business “in” NY, though it would move the non-NY revenue to a different treatment.
https://www.tax.ny.gov/bus/ct/ctidx.htm