The trend in state income taxation is for states to adopt a version of the unitary theory of multijurisdictional taxation in their statutes and regulations.

Question Content Area

a$.$ Complete the paragraph below that outlines why some states are attracted to the unitary theory and a combined reporting scheme of multistate income taxation.

The unitary approach to state taxation attempts to

taxpayers attempts to place profitable operations in

$.$ States have adopted combined reporting as a means to

the use of passive investment companies and

the taxation of income from intangible assets.