The Next Debtpocalypse: Fiscal Meltdowns in the States

Inside the plan to gut state budgets and keep corporate America happy.

—By Siddhartha Mahanta

Fri Aug. 12, 2011 3:00 AM PDT

With the dust settling after the debt ceiling fight, Republicans—along with a few Democrats—are moving on to their next agenda item: blocking states from collecting millions in much-needed tax revenue from corporations.

The Business Activity Tax Simplification Act, or BATSA, passed out of the House Judiciary Committee in early July and is set to be taken up by the full House when Congress returns from its August recess. The bill, which is sponsored by Rep. Bob Goodlatte (R-Va.), would forbid state and local governments in the 44 states that collect corporate income taxes from taxing a sizable chunk of corporate profits.