The week in state tax news: One of the nation’s largest tax consulting services offered up a bold forecast for the coming year in state taxes. The forecast includes some safe bets, including a prediction that four states will cut rates. Among the riskier wagers is a prophecy that the Maryland Supreme Court will strike down the digital advertising tax. A proposed California wealth tax is in trouble, and New York’s governor backs keeping the expiring business income tax rate for a bit longer.
Looking ahead to state budget tax proposals: With the new year, governors have started laying out their formal budget and policy agendas for upcoming legislative sessions through inaugural addresses, state of the state speeches, and other kickoff events. Notably, Florida’s governor listed a bevy of fresh tax exemptions and holidays, Maryland’s new chief executive aimed to end child poverty, and in Mississippi the governor proposed permanently eliminating the income tax.