States Get More Cautionary Notes About Post-Covid Tax Cuts (2)

The week in state tax news: A new study adds to prior warnings that major post-pandemic tax cuts create long-term risks for states, especially when the cuts are big and permanent. Meanwhile, Microsoft’s $94 million win in California signals refund opportunities for other multinationals, South Carolina moves to soften the state’s edge in transfer pricing audits, and New Jersey’s governor proposes a new corporate fee that is seen as another tax surcharge.

Nearly every state cut taxes during the Covid-19 pandemic in response to revenue spikes and surpluses, but Arizona, Iowa, and Wisconsin offered relief that will saddle them with ...