Tags: Trump Tax Reform | trump effect | tax revenue | wealthy | delay | payment | to states

States Tax Revenues Down, Feel 'Trump Effect' as Wealthy Delay for Lower Rate

Image: States Tax Revenues Down, Feel 'Trump Effect' as Wealthy Delay for Lower Rate
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By    |   Sunday, 23 Jul 2017 10:13 AM

A decline in tax collections this April, as reported by Rockefeller Institute of Government, suggests a "Trump effect" of America's wealthy pushing ahead taxable income to 2017 in anticipation of lower tax rates, according to The Hill.

"Trump had promised large income tax cuts particularly for the top tax rate, which means, if implemented, it would largely benefit high-income taxpayers," RGI's study author Lucy Dadayan told The Hill. "Many high-income taxpayers had large incentives to shift non-wage income from tax year 2016 to tax year 2017 in anticipation of lower tax rates."

The study reported a 4 percent reduction in tax revenues from 2015 to 2016 among the 41 states reviewed combined. Twenty of those states received fewer tax dollars, including Massachusetts, New York, North Dakota, Oklahoma, and Rhode Island,  all which had a tax revenue drop by more than 10 percent, per The Hill.

"This tax cut plan will largely benefit wealthy taxpayers and will result in substantially lower tax revenues for state and local governments," Dadayan told The Hill. "Many states had to tighten spending and even implement mid-year budget cuts to address revenue shortfalls."

President Donald Trump's campaign promises on taxes included dropping the top personal income tax rate from 39.6 percent to 35 percent, eliminating the 3.8 percent net investment tax which funded the Affordable Care Act, and taxing businesses at just 15 percent.

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A decline in tax collections this April, as reported by Rockefeller Institute of Government, suggests a "Trump effect" of America's wealthy pushing ahead taxable income to 2017 in anticipation of lower tax rates, according to The Hill."Trump had promised large income tax...
trump effect, tax revenue, wealthy, delay, payment, to states
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2017-13-23
Sunday, 23 Jul 2017 10:13 AM
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