Tax legislation allowing New Hampshire to curtail profit shifting by multinational corporations collapsed Thursday, when lawmakers rejected a bill overhauling the state’s business profits tax.
The state House voted 192 to 176 to block H.B. 121, which would have abandoned New Hampshire’s “water’s edge” income reporting rule and replaced it with a worldwide combined reporting regime. Mandatory worldwide reporting would have forced businesses to calculate their taxes based on global income attributable to New Hampshire—permitting the state to reach for tax revenue beyond US borders, or the “water’s edge.”
No state currently applies mandatory worldwide combination for all businesses, ...