The House is scheduled to vote today on H.R. 1956, the Business Activity Tax Simplification Act of 2005.  The would forbid states from imposing a corporate tax (based on net income, gross receipts, net worth, etc.) on any corporation that has no physical presence (property or employees) in-state.

Primary Sources:

• H.R. 1956
• Congressional Budget Office Cost Estimate
• Congressional Hearing
• List of Co-Sponsors
• National Governors Association:  State-by-State Impact

Think Tank Reports:

• Center on Budget & Policy Priorities:  House To Consider Restricting States’ Authority To Tax Corporate Profits: Bill Would Cost States $3 Billion Annually, Says CBO
• Center on Budget & Policy Priorities:  Proposed "Business Activity Tax Nexus" Legislation Would Seriously Undermine State Taxes on Corporate Profits and Harm the Economy
• Tax Foundation: The Business Activity Tax Simplification Act: A Good Standard for Multi-State Business
• Tax Foundation: Paying for "Civilized Society" in the Global Marketplace: H.R. 1956’s Physical Presence Rule Accurately Matches Taxes Paid and Benefits Received

Press Reports:

• Associated Press:  States Worry About Losses Under Tax Bill
• Bloomberg:  States Oppose Federal Bid to Curb Business Tax
• Seattle Times:  Congress May Trim State Tax Revenue
• Washington Post Editorial: Another Corporate Tax Break? A Federal Tax Cut Using State Dollars Is a Bad Idea