Interstate Tax Uniformity and the Multistate Tax Commission

Abstract

Concerns over nonconformity of state tax systems mounted through the 20th century as the multistate presence of businesses expanded. Fearing federal intervention and the loss of state tax sovereignty, the Multistate Tax Commission (MTC) was established in 1967 to help promote uniformity in state taxation. This paper examines the role of the MTC in securing greater uniformity of state corporate income taxes. We discuss the activities of the MTC, the prospect for securing voluntary interstate cooperation, the degree of uniformity achieved by the MTC and alternative mechanisms for achieving greater harmony in state taxation.