Following is an excerpt of an op-ed by Carl Davis, ITEP researcher director, regarding the new regulations issued by the Treasury Department:
Last year’s federal tax overhaul has cast a bright light on a corner of the tax code that long has needed scrutiny.
With the passage of the Tax Cuts and Jobs Act (TCJA) in December, Congress inadvertently encouraged more state governments to embrace a little-known tax strategy to help their residents avoid federal taxes. But Thursday, the IRS and Treasury Department responded with proposed regulations that just might, if given a chance, shut down both the new schemes and the ones that predated the new federal tax law. Read more