States need to get ready for federal tax reform

There is lots of talk about federal tax reform. We are likely to see some legislative language from the House in spring, according to Speaker of the House Paul Ryan (see Jeremy Quittner, “Paul Ryan Says Tax Reform Won’t Happen Any Time Soon,” Fortune, 2/2/17).

Federal tax reform presents opportunities and challenges for states. I’ve got an article in State Tax Notes on suggestions for state governments to consider.  For example, to lower federal tax rates, the base will be broadened and most credits will go away.  One of those credits is the low-income housing credit. State and local governments are indirect beneficiaries of this credit.  State governments should consider asking Congress to give some of those dollars to the states rather than using them all for rate reductions.

I hope you’ll take a look – Time to Really Get Ready for Federal Tax Reform.

What do you think?
Source: http://21stcenturytaxation.blogspot.com/2017/02/states-need-to-get-ready-for-federal.html

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s