Report: The State Income Tax Divergence

Six states now impose double-digit income tax rates, and more are considering similar increases. In this presentation, attorney and CPA Chad D. Cummings analyzes the growing divergence in state tax policy, where some jurisdictions are aggressively raising rates while others continue to reduce or eliminate them. The discussion explains how this widening gap increases the risk for business owners in high-tax states, particularly as individuals and companies become more mobile and more responsive to changes in tax burden. It also outlines how redomestication provides a legally sound method to relocate an existing business while preserving its EIN, contracts, credit history, and operational continuity, and why commonly recommended alternatives such as foreign registration, merger, and dissolution often fail to achieve the intended result. Finally, the presentation addresses why timing is critical, and why decisions about domicile, residency, and business structure must be made before new tax regimes take effect. Learn more: https://www.cummings.law/redomestication/