Bloomberg Tax: Governors Ask Trump for $500 Billion in Federal Support

The Institute on Taxation and Economic Policy, in a policy brief Wednesday, outlined some tax code reforms to help states cope with shortfalls and safeguard for the future. Among the institute’s suggestions: personal and corporate income taxes for states heavily reliant on retail sales collections; increased taxation of digital transactions; decoupling from certain federal tax breaks for corporations.

Additionally, the brief says: “The devastating effect of Covid-19 on state and local budgets is exposing longstanding shortcomings in state and local tax structures, which are in many ways inadequate, inflexible, inequitable, outdated, and upside-down,” so the policy responses “should focus on addressing as many of the issues above as possible.” Read more