Although corporate income taxes make up a relatively small amount of states’ total revenue they get a disproportionate amount of attention. That is likely because of the negative connotation toward anything that is perceived as “”corporate welfare”” or a “”corporate tax loophole”” particularly given the trend toward more transparency in corporate reporting and because revenue is tight. Increasing corporate income taxes is more politically palatable than most other potential tax increases. Although states have been concerned for many years about corporate taxpayers’ efforts to use related-party charges to manage state tax liabilities that concern has increased in recent years. As a result  the methods by which states are attempting to capture those charges in a taxpayers; taxable base has continued to evolve. To comat the benefits  of related-party transactions some states have enacted unitary combined reporting while others have remained separate reporting states but use expense disallowance or addback provisions.