Individuals who could face higher tax rates in 2011 are not the only ones anxiously watching what Congress might do about the expiring Bush-era tax cuts.
Most state tax codes are based to some degree on federal laws. Such tax code connections, usually referred to as state-federal conformity, could force state revenues up or down, reports Stateline.org, depending on the state and whether Congress decides to extend all of the tax
cuts, just some of them or none at all.
"If all of the tax cuts are extended, then states wouldn't see a change from their current fiscal footing," says the state policy and politics publication. "But if some portion of the cuts is allowed to expire as planned on December 31, then state legislatures next year may find themselves in a debate that mirrors the one going on in Washington today: How much of a burden should taxpayers shoulder during a fragile economic recovery?"
So while you're watching what your U.S. Representative and Senators are doing when it comes to Dubya's tax cuts, you might want to keep an eye on your state legislators, too.Related posts:
- Democrats who support Bush tax cuts
- States that get the most federal money
- Some quick tax cut calculations
- OMG! What will happen to my tax bill if the Bush tax cuts
- Tax cuts smackdown!
- Obama tax official offers some support for dual estate tax application in 2010
- Tax cuts or total tax reform?
- Debunking 5 Bush tax cut myths
- Your 2011 tax burden revised
- Yet another tax what-if calculator
- Taxes on your tax rebate
- Will your state make you pay up on forgiven federal mortgage debt?
- State Tax Departments
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