Conformity

A costly tax break for wealthy venture capitalists is drawing some critical attention from state policymakers.

States should immediately decouple from four costly corporate tax provisions in the new federal tax law.

This webinar focused on the ways the new tax law could impact state revenues by changing policies that state lawmakers will soon consider mirroring in their own income tax codes.

States should decouple from the federal Qualified Small Business Stock (QSBS) exemption.

As the Trump megabill blows holes in state budgets, Colorado is leading with reforms to curb offshore tax avoidance and roll back wasteful corporate subsidies.

The new tax law enacted last month found a temporary compromise on the level of the cap, boosting it to $40,000 through 2029, but failed to fix a loophole that allows some rich taxpayers with good accountants to completely avoid the cap

While a federal SALT cap is hotly debated, capping deductibility at $10,000 was an unambiguously good idea at the state level. States would be smart to stick with the current cap or, better yet, go even farther and repeal SALT deductions outright. Going along with a higher federal SALT cap would double down on a regressive tax cut that will mostly benefit a small number of relatively wealthy state residents and cost states significant revenue.

The auto loan interest deduction that recently passed the House is designed, at least in part, to mitigate the impact of tariff-induced price increases on vehicles assembled in America. But the deduction is incapable of offsetting even small-scale price increases, especially for working-class families and others with moderate incomes.

Creating a special tax break for tipped income – as at least 20 states are considering this spring – would harm state budgets, encourage tax avoidance, and fail to reach the vast majority of low- and middle-income workers.