GOP tax law boosts income taxes, budgets in some states

BATON ROUGE, La. (AP) — The Republican tax overhaul is giving most Americans a break on their federal income taxes. But fallout from the same law means many people could actually see their state income taxes rise.

For some state governments, the prospect of getting more revenue without actively raising taxes is almost too good to be true, but it also forces Republican governors and lawmakers into a corner. Do they stay true to the party's long-standing tax-cut philosophy or keep the extra money rolling in to address their states' budget gaps and other spending priorities?

The answer so far in this year's still-young legislative sessions: It depends.

Pushes to reduce taxes have arisen in Republican-leaning states including Iowa, Michigan, Utah and Georgia, where the GOP governor has proposed cuts after initially insisting the state should wait.


Source : Yahoo News