Report says federal tax reform could pressure local governments to hold the line on taxes – Center Square

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debtsor
6 years ago

“Federal tax changes from 2017 could make it more politically difficult for local governments to raise taxes, according to a report.”

I know my school district is up to the difficult challenge! They’ll find a way to raise my taxes!

Andrew Szakmary
6 years ago

The other side of this is that many states reaped huge windfall revenue gains from the 2017 tax legislation. Many, many fewer folks will itemize deductions on their federal returns, and they will owe more on their state returns because most states only allow you to itemize if you also do so on your federal return. Fewer deductions combined with unchanged state tax rates means more revenue for the states. Here in Virginia, the state revenue increase is over $1 billion annually, and the New Democratic legislature is wasting no time spending all of it, thank you very much.

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