CNNMoney: How the Federal Tax Overhaul Could Reshape State Budgets

Meg Wiehe, deputy director of the left-leaning Institute on Taxation and Economic Policy, said she’s noticed a trend over the past year toward more aggressive taxation of companies and high-income people, ever since Kansas backtracked on a high-profile experiment with eliminating taxes on pass-through companies that led to a plunge in revenue.

Despite the challenges posed by the cap on the state and local tax deduction, she still favors boosting individual income taxes as the most stable and predictable way to raise revenue without changing how the economy functions.

“This is an opportunity for lawmakers and advocates to put out a really strong argument for why raising revenue through a personal income tax makes the most sense,” Wiehe said. “The top 1% of their states can certainly afford that, now that they’ve gotten a break through the federal tax changes.” Read more

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