How the Fiscal Cliff Will Impact the States
Posted at noon on Nov. 19, 2012
Amid the national dialogue emerging around the “fiscal cliff,” the Pew Center on the States issued a new report looking at how the spending cuts and tax increases are linked intertwined with state policies.
“At least 30 states and the District of Columbia would see revenue increases because they have tax credits based on federal credits that would be reduced… However, six states allow taxpayers to deduct their federal income taxes on their state tax returns. For these states, higher federal taxes would mean a higher state tax deduction, reducing state tax revenues.”
“Roughly 18 percent of federal grant dollars flowing to the states would be subject to the fiscal year 2013 across-the-board cuts under the sequester…including funding for education programs, nutrition for low-income women and children, public housing, and other programs.”