States need to get ready for federal tax reform

There is lots of talk about federal tax reform. We are likely to see some legislative language from the House in spring, according to Speaker of the House Paul Ryan (see Jeremy Quittner, "Paul Ryan Says Tax Reform Won't Happen Any Time Soon," Fortune, 2/2/17).

Federal tax reform presents opportunities and challenges for states. I've got an article in State Tax Notes on suggestions for state governments to consider.  For example, to lower federal tax rates, the base will be broadened and most credits will go away.  One of those credits is the low-income housing credit. State and local governments are indirect beneficiaries of this credit.  State governments should consider asking Congress to give some of those dollars to the states rather than using them all for rate reductions.

I hope you'll take a look - Time to Really Get Ready for Federal Tax Reform.

What do you think?

source http://21stcenturytaxation.blogspot.com/2017/02/states-need-to-get-ready-for-federal.html