Stimulus tax breaks threaten state revenues
Cash-strapped state treasuries could lose tens of millions of dollars in income and corporate tax revenue if states copy the tax breaks in the federal economic stimulus package, officials say.
Most states tie their tax code to the federal government’s to make it easier for individuals and businesses to fill out their tax forms. The $787 billion stimulus package that Congress approved and President Obama signed contains about 10 new tax cuts that state officials will have to decide whether to follow.
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