District of Columbia

The results are a mixed bag, with some states enacting promising policies that will improve tax equity and others going in the opposite direction.

Federal lawmakers passed a bill along party lines that would force the District of Columbia to override the decision of local elected officials and implement all of the costly and inequitable federal tax cuts passed under the “One Big Beautiful Bill Act” (OBBBA).

Despite wintry conditions across much of the country, that hasn’t stopped state lawmakers from debating major tax policy changes.

They should take steps to protect and boost their own revenues. And they should take a second look at their own tax cuts.

In the same way states are building upon federal tax credits, localities should consider building on state tax credits.

Many states already recognize the potential of these credits to boost low- and moderate-income households. Other states should follow suit.

It’s wildly inappropriate for a U.S. Treasury Secretary to lean on states to adopt or not adopt specific federal provisions in their own state tax codes.

State deductions for tips and overtime are not only ineffective at supporting working-class people, it will come at a substantial cost to state budgets.

An unknown number of workers who previously were assumed to be ineligible for the tax break may nonetheless claim it.