Document Type

Article

Publication Date

7-13-2020

Abstract

States will soon be facing dire revenue needs because of COVID-19. This article is part of Project SAFE (State Action in Fiscal Emergencies), an academic effort to help states weather the fiscal crisis by providing policy recommendations

backed by research.1 As we have explained previously,2 in the absence of sufficient federal action, states should prioritize raising revenue through targeted taxes on economic actors that are best enduring the crisis, rather than cutting services needed to protect their economies or residents suffering more from the crisis. Here we focus on how states could raise revenue by rethinking whether and how to conform to the corporate income tax provisions of the Tax Cuts and Jobs Act. This article is the second in a two-part series. The first argued why states in general should consider strategic nonconformity with the TCJA and, specifically, how they should consider strategic responses to the TCJA’s personal income tax provisions.3 This second installment considers strategic responses to the TCJA’s corporate income tax provisions.

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Tax Law Commons

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