Wall Street Journal: As Treasury Targets Workarounds to Tax Law, Impact May Extend Beyond High-Tax States

Tax experts say the federal government will find it difficult if not impossible to write rules to stop the workarounds in New York, New Jersey and Connecticut without also limiting existing tax credits in Georgia, Alabama, South Carolina and elsewhere. According to a recent paper from law professors, 33 states currently have more than 100 credit-for-donation programs, for varying purposes and at various credit percentages.

“There’s no obvious legal answer to this,” said Carl Davis, research director at the Institute on Taxation and Economic Policy, a left-leaning group in Washington. “If there was, we would have seen it already.” Read more