The Wall Street Journal’s Richard Rubin details (paywall) how the tax cuts passed by Congress last month will create ripple effects — and some difficult choices — for state legislatures.
State lawmakers will have to decide whether to make their codes conform to the new law and what other changes to enact in the wake of the federal overhaul.
“Everyone thought that tax reform was done,” Nicole Kaeding, an economist at the Tax Foundation told Rubin. “All we’ve done is move it from one capital to 50 capitals.”
Bill Sweet of Ritholtz Wealth Management used the data in the Journal piece to make the chart below showing which states rely most on income taxes for revenue.
