Kroll Bond Rating Agency (KBRA) has released a macro-market research report, “Federal Tax Reform Has Significant Implications for State and Local Government Finances.” The report makes the following key points:
- The major tax reforms undertaken by the Republican administration today will change the tax equation across all sectors of the economy from individuals to homeowners to corporations, but it also has major consequences for state and local government finances. Since federal, state and local tax policy interact in a variety of complex ways, federal tax reform will have important implications for how state and local governments fund and manage operations over time.
- While there are still some unknowns about what provisions of the House and Senate tax reform plans will ultimately be legislated, it appears that high tax, high income states will be the most affected by provisions in the current plans.
- States that conform to the Internal Revenue Code definitions for taxable income are likely to see revenue from personal income taxes increase, assuming no change in tax rates.
Please click on the link below to access the report:
Federal Tax Reform Has Significant Implications for State and Local Government Finances
If you have any difficulties accessing the report, please contact [email protected] or visit www.kbra.com.