Daniel Hemel Explains Why States May Get Away With Creative Income Tax Maneuvers

Why states may get away with creative income tax maneuvers

Fearing that the new tax law will make it harder for them to raise enough revenue for public schools and other vital services, high-tax states such as California, New Jersey and New York are wasting no time in fighting back.

Other states are likely to follow suit as the benefits of these actions become clear, setting the stage for a bitter legal dispute over federal and state taxation.

As a tax law professor who researches the interactions between federal and state tax systems, I believe these initiatives are likely to succeed in softening the impact of the new tax law on residents of high-tax states.

Read more at The Conversation

Tax policy