While dozens of states mull over their response to changes in the federal tax code reform, a few states moved rapidly with their response. Here’s an overview of where the front-runners in reform are coming out.
Georgia’s state tax reform phases in the top individual and corporate income tax rates from 6.0% to 5.5% by 2020 and doubles the standard deduction (to $4,600 for single filers).
Idaho adopted a 0.475% point across-the-board individual income tax rate cut and incorporated the new federal standard deduction ($12,000 for individual filers), as well as created a new $130 per child tax credit and reduced the corporate income tax rate by 0.475%.
The New York Legislature approved changes in the state’s FY 19 budget, including an optional payroll expense tax on employers intended to retain the deductibility of state and local taxes for individuals; two new state-operated charitable accounts that are 85% creditable against state income tax; and changes to the treatment of federally repatriated income. At this writing, the bill was on Governor Cuomo’s desk for his signature.
As state governments weigh a response to federal tax reform, opposing bills and budget countermeasures have surfaced in several states, making it difficult to predict outcomes. We'll keep you posted on measures that get signed into law.
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