Taxes

States debate conforming with federal tax changes

Five states automatically adopted the changes and are set to lose hundreds of millions of dollars.
A sign outside the Internal Revenue Service building in Washington. (AP Photo/Patrick Semansky, File)

State leaders are starting to debate whether to incorporate President Trump’s tax cuts into state tax codes, weighing the need to fund public services against political pressure to lower taxes. 

The discussions are most urgent in Colorado, Iowa, Montana, North Dakota and Oregon — five states that automatically adopted the One Big Beautiful Bill Act’s major personal and corporate income tax changes, according to the Tax Foundation, a free-market think tank based in Washington, D.C.

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