Academics, state officials and business leaders will address the thorny question "Should the federal role in state income taxation change?" on Thursday, April 28, in a daylong conference at UC Davis. "The conference will focus on problems that multistate businesses face because they operate in many different jurisdictions," says Steven M. Sheffrin, professor of economics and conference coordinator. "The challenge is to find a set of rules that preserves state autonomy while, at the same time, reduces the compliance burden on business." Gray Davis, California state controller, will discuss the problems inherent in current state tax policies during the morning session. The afternoon program will highlight possible solutions and their impact on states and taxpayers. The conference was developed in response to interest by the business community and Franchise Tax Board in improving the business climate by changing the income tax environment. The conference is co-sponsored by the California Franchise Tax Board and the Institute of Governmental Affairs at UC Davis.