States Get A Windfall From GOP Tax Cuts, But Will They Return The Money To Taxpayers?
When Republicans were putting together their tax reform plan last year, a chorus of critics warned that it would devastate state budgets. Like so many other claims, this turned out to be false.
A “news analysis” in the Washington Post said the tax law would make “it harder for states and cities to pay their bills.”
A widely cited National Education Association report claimed the GOP tax bill would “blow a nearly $250 billion hole in state and local revenue” that would put “nearly 250,000 education jobs at risk.”
But once President Trump signed the tax reform into law, state budget officials started reporting that revenues will actually increase because of it.
New York’s Department of Taxation and Finance, for example, reported in January that it expects tax revenues to go up by $1.1 billion in 2019 because of the tax law. This is a state, mind you, whose governor, Andrew Cuomo, described the tax bill as a “missile of destruction … aimed at New York.”