States face decision on adopting federal tax deductions
Watch & Listen in 60 Seconds
60-Second Summary
JEFFERSON CITY, Mo. — State legislatures will decide this year whether to adopt federal tax changes that create deductions for tips, overtime, car loans and business equipment. The U.S. Treasury urged states to conform so taxpayers receive federal reductions; states that do not conform could leave workers liable for state taxes on income untaxed. Adoption could save residents and businesses hundreds of millions annually while increasing state budget pressures due to added Medicaid and SNAP costs included in the bill signed summer. Michigan will implement a 24% wholesale cannabis tax on Jan. 1. Based on 6 articles reviewed and supporting research.
About this summary
This 60-second summary was prepared by the JQJO editorial team after reviewing 6 original reports from WHAS 11 Louisville, Los Angeles Times, AP NEWS, Internewscast Journal, The New Indian Express and The Detroit News.
Timeline of Events
- Summer: Congress and the White House sign a bill creating federal tax deductions and program changes.
- Post-signing: U.S. Treasury publicly encourages states to conform to federal tax changes.
- States prepare for upcoming legislative sessions where some will opt in and others will not.
- Retailers in Michigan report pre-January sales increases ahead of a 24% wholesale cannabis tax.
- Jan. 1: Michigan's 24% wholesale cannabis tax takes effect and state conformity decisions influence next tax filing cycles.
- Articles Published:
- 6
- Right Leaning:
- 1
- Left Leaning:
- 1
- Neutral:
- 4
- Distribution:
- Left 17%, Center 67%, Right 17%
Certain residents and businesses that receive tips, overtime, or invest in qualifying equipment would receive lower tax liabilities and could collectively save hundreds of millions annually if states adopt the federal tax changes.
State governments and public programs could face increased fiscal pressure because lost revenue from conformity may coincide with higher Medicaid and SNAP costs mandated by the federal bill.
After reading and researching latest news.... State governments must decide whether to conform to federal tax changes that affect tips, overtime and business deductions; adoption can reduce state taxpayers' liabilities but may worsen budget shortfalls due to linked Medicaid and SNAP mandates; Michigan's 24% wholesale cannabis tax begins Jan. 1.
Coverage of Story:
From Left
The U.S. Treasury wants more states to adopt Trump's tax cuts. Few have done so
Los Angeles TimesFrom Center
States face decision on adopting federal tax deductions
WHAS 11 Louisville AP NEWS Internewscast Journal The New Indian Express
Comments