Taxes

Big Beautiful Bill sparks state tax debates

States must decide to what extent they want to conform to federal tax changes — and the revenue repercussions of doing so.
An Internal Revenue Service 2023 1040 tax form and instructions. (AP Photo/Peter Morgan, File)

Governors and lawmakers in at least nine states are considering altering state tax codes in response to the One Big Beautiful Bill Act, which cut federal personal and corporate income taxes starting in Tax Year 2025.

Supporters of conforming with the new federal law say copycat state tax cuts will put money in people’s pockets and encourage economic growth. Critics counter that tax relief in the Big Beautiful Bill is tilted toward wealthy people and big business.

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