New Jersey Businesses Balk at Law Taxing Foreign Income

New Jersey’s business community is howling over recent tweaks to the state’s tax code that they say upend the way global companies are taxed and could be particularly unfair to local powerhouses such as Merck & Co. Inc. and Johnson & Johnson.

The change comes in response to last year’s federal tax overhaul, which revamped the way foreign earnings are taxed. At issue are the state’s new provisions on global intangible low-taxed income (GILTI), a new category of income in the 2017 federal tax law (Pub. L. No. 115-97) that aims to bring foreign-earned income back to the ...