Enterprise tax fails.
David Gamage 17, Professor of Law at Indiana University-Bloomington, Darien Shanske, Professor of Law, UC Davis School of Law, 2017, “Tax Cannibalization And Fiscal Federalism In The United States,” Northwestern University Law Review, 111 Nw. U.L. Rev. 295, lexis
Although we cannot further elaborate the specifics here, imagine (hypothetically) a proposal for a state to reduce its corporate income tax rate and to then make up for the lost revenue by levying something similar to New Hampshire’s Business Enterprise Tax. As we discussed previously,228 a proposal of this sort could lessen tax cannibalization to the extent that the proposal would successfully reduce the ways in which the state’s taxes previously piled on to the flaws in the federally defined corporate income tax base that invite vertical distortions. But, again, the revenue benefits from this would largely end up with the federal government rather than with the acting state.