States Grapple With Federal Tax Cut That May Raise State Taxes

States Grapple With Federal Tax Cut That May Raise State Taxes

State governments are now challenged with the task of responding to federal income-tax cuts if they choose to accept the new federal definitions. Tax reform is far from over on the state level as the new federal income tax base could mean higher state taxes.

States with high income taxes such as New York and California could be at risk for adverse effects. The department of Taxation and Finance issued a report last week estimating an 840$ million tax increase.

The federal legalization reduces tax breaks in areas such as individual deductions for mortgage interest. This is just one example of federal cuts that states must now adjust to. Its undeniable state legislators have some tough choices ahead of them.

Read more here https://www.wsj.com/articles/states-grapple-with-federal-tax-cut-that-may-raise-state-taxes-1516703402

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