As we’ve said, many states expect to see a change in revenues under the federal tax law. But states should respond very cautiously to the possibility of a revenue...
off the charts
POLICY INSIGHT
BEYOND THE NUMBERS
BEYOND THE NUMBERS
States Should Respond Cautiously to Uncertain Revenue Impacts From Federal Tax Changes
January 23, 2018
Some state policymakers have overreacted to the possibility of new revenue from the recent federal tax changes by proposing major income tax rate cuts, including some that would cost more than the highly uncertain estimate of new revenue. While claims that most or all states will see...
Claims of State "Windfalls" from Federal Tax Changes Are Overstated
January 23, 2018
Claims that most states will receive a revenue “windfall” from the recent federal tax changes due to their tax codes’ interaction with the federal one are overstated, our major new report...
UPDATE: California House Members Appear to Be Settling for Bad SALT “Compromise”
December 15, 2017
Republican House members from California have reportedly pushed to change a provision in the emerging GOP tax bill that eliminates much of the state and local tax (SALT) deduction, which lets taxpayers deduct state and local property taxes and either state and local income taxes or general sales taxes. But the...
California House Members May Settle for Bad SALT “Compromise”
December 11, 2017
Update, December 14, 2017: This post has been revised.
Republican House members from California are reportedly pushing to change a provision in the emerging GOP tax bill that eliminates much of the state and local tax (SALT) deduction, which lets taxpayers deduct state and local property taxes and either...
House District Map: Partial SALT Repeal Kills Most Valuable Part of Deduction
December 5, 2017
The part of the federal income tax deduction for state and local taxes (SALT) that’s most valuable to taxpayers in 77 percent of House districts — not just those with relatively high taxes — is the deduction for state and local income or sales taxes. Yet that’s exactly the part of SALT that both the House- and Senate-passed tax bills would eliminate.
The SALT deduction lets...
K-12 Funding in Some States Still Far Below Pre-Recession Levels
November 29, 2017
Public investment in K-12 schools — crucial for communities to thrive and the economy to offer broad opportunity — has fallen dramatically in a number of states over the last decade, our newly updated survey of state budgets finds. Worse, some of the deepest-cutting states have also cut...
Senate Tax Plan’s End to SALT Deduction a Poor Trade for Tax Cuts for Wealthy
November 9, 2017
Senate Finance Committee Chairman Orrin Hatch’s new tax plan would reportedly eliminate the federal deduction for state and local taxes (SALT), which lets taxpayers who itemize deductions deduct state and local property taxes and either state and local income taxes or general sales...
House Tax Bill’s Changes to State and Local Tax Deductions Would Hurt States
November 2, 2017
The House tax bill released today ends the federal deduction for state and local income and sales taxes and limits the deduction for state and local property taxes to taxes under $10,000 — all to pay for marginal income-tax rate cuts. That would be a bad deal for...
SALT “Compromise”: Similar Harm to States as Full Repeal
October 31, 2017
The tax bill that House Ways and Means Committee Chairman Kevin Brady plans to release tomorrow will reportedly end the federal deduction for state and local income and sales taxes, but keep it for state and local property taxes. This “compromise” on state and local...