Hastings International and Comparative Law Review


The constitutionality of the states' use of tax apportionment method to tax income of multinational corporations has been disputed for some time. This Note considers the constitutional challenges advanced by domestic corporations with foreign affiliates and the solution provided by the United States Supreme Court. The Note then analyzes whether a different result is warranted in the case of a foreign parent corporation with domestic affiliates and whether congressional action is necessary to resolve the issue in the foreign commerce context.