Any new windfall for states is certain to set off a battle in legislatures about how to spend it.
States may soon see an unexpected windfall of tax revenue as a byproduct of the federal tax law, but several governors have said they don’t want the money.
Several governors have said they anticipate their state will take in more money because of the changes in the Republican tax overhaul, which President Donald Trump signed into law on Friday. The extra money could set off battles in state legislatures over how to spend the unexpected windfall, or whether they should even collect it in the first place.
“It is very clear that due to the loss of several longstanding federal tax deductions and exemptions, Maryland state revenue will likely increase by hundreds of millions of dollars,” Maryland Gov. Larry Hogan, a Republican, said in a statement earlier this week. “Our goal will be to leave that money in the pockets of hardworking Marylanders.”
GOVERNING.COM
BY DANIEL C. VOCK | DECEMBER 22, 2017