What States Should Do in Response to Federal Tax Cuts

In response to the enactment of the Tax Cut and Jobs Act in December, the Institute on Taxation and Economic (ITEP) published the following policy brief to highlight what lessons should inform and guide state fiscal policymakers. 

"As with all tax policy decisions, state policymakers should determine their responses to the federal tax bill with an eye toward maintaining adequate revenue, promoting tax fairness, and ensuring stability and sustainability in the tax code. And given the high stakes and significant uncertainty surrounding these debates, a broad view of each of these considerations is particularly crucial. When considering the full picture of state funding needs, who is most affected, and what is to be expected in the long term, a few key lessons come to light."

Read more about what state policymakers should consider.

 

Scott Downes