Bloomberg/BNA: Tax Reform Likely in 15 State Legislatures in 2013, Think Tank Says

December 20,2102

The major shifts in partisan control due to the November elections, which resulted in 37 states having unified one-party control over the Legislature and governorship, are likely to bring state tax reform to the forefront in 2013, Matthew Gardner, executive director of the Institute on Taxation and Economic Policy (ITEP), said Dec. 19.

“At a time when most attention is focused on fiscal cliff, we think there’s an equally consequential debate emerging in state houses,” Gardner said. Gardner and his colleagues spoke during a press conference call….

Four Major Issues for Reform

Any good reform package should look to address four major problems present in almost all state tax systems, said Carl Davis, a senior analyst at ITEP. These are problems of adequacy, sustainability, fairness, and simplicity, he said…

ITEP highlighted 15 states to watch as likely to enact some sort of tax reform in 2013. Of these, Kentucky, Minnesota, and Utah, and possibly California, New York, and Massachussetts, are likely to engage in what ITEP termed real and substantial tax reform that would correct the inequalities present in most state tax systems, according to Meg Wiehe, ITEP’s state policy director….

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