News Articles: Tax Cuts & Jobs Act of 2017
NASBO has compiled some relevant news articles and documents that address individual state tax revenue impacts from the Tax Cuts and Jobs Act of 2017.
Colorado
Why the newly passed federal tax cut will mean higher state taxes for some in Colorado
The Denver Post – 12/20/2017
Georgia
Uncertainty about federal tax overhaul clouds Georgia’s budget process
Atlanta Journal-Constitution - 12/9/2017
Idaho
Federal tax overhaul could cost Idaho taxpayers $100M
The News Tribune – 1/7/2018
Federal tax bill could have big implications for Idaho's state budget
Spokesman-Review - 12/12/2017
Iowa
Federal tax law could mean Iowa taxpayers pay more to the state – unless lawmakers act
Des Moines Register – 1/5/2018
Iowans’ state tax liability likely to increase after federal reform
InsideSources Iowa – 1/5/2018
Kansas
Federal tax changes boost Kansas revenues in December
Lawrence Journal-World - 1/2/2018
Maryland
Governor Hogan pledges to protect Marylanders from tax bill
Baltimore Sun - 12/20/2017
Michigan
Gov. Snyder, Michigan treasurer warn taxes will rise under Trump tax overhaul
Detroit Metro Times – 1/4/2018
Minnesota
High-stakes debate coming to Minnesota Legislature after federal tax changes
SC Times – 1/7/2018
Missouri
New study shows Missouri budget will feel less pain under Trump tax cuts
St. Louis Post-Dispatch 1/2/2018
Montana
State says Montana will lose millions from federal tax reform
Great Falls Tribune - 12/29/2017
North Dakota
Estimated impact of Tax Cuts and Jobs Act of 2017 on North Dakota individual income tax collections for2017-19 biennium
State of North Dakota Office of State Tax Commissioner
Pennsylvania
December tax collections far and away better than what Pa. took in last December
Pennlive.com - 1/2/2018
This Week on the Hill
The House returns this week, as both chambers are in and work continues on funding the federal government after the current continuing resolution expires January 19.
The House convenes today, to establish a quorum in the House of Representatives for the Second Session of the 115th Congress. On Tuesday, the House will consider 15 bills under suspension of the rules, including H.R. 4559, the Global Aviation System Security Reform Act. For Wednesday, the chamber is scheduled to consider one bill and on Thursday, will consider S. 139, the FISA Amendments Reauthorization Act. Several committees scheduled hearings this week: the Energy and Commerce Committee will hold a hearing Tuesday on modernizing the Department of Energy; the Financial Services Committee will hold a hearing Tuesday on financial regulatory reform legislation; and the Homeland Security Committee will hold a hearing Tuesday on border security.
The Senate convenes today and will resume consideration of the nomination of William Campbell Jr. to be U.S. District Judge for the Middle District of Tennessee. Several committees scheduled hearings this week: the Environment and Public Works Committee will hold a hearing Wednesday on water infrastructure needs and challenges; the Health, Education, Labor and Pensions Committee will hold a hearing Tuesday on the opioid crisis; and the Senate Finance Committee holds a nomination hearing Tuesday for Alex Azar to lead the Department of Health and Human Services.
Attorney General Rescinds Prior Guidance on Marijuana Prosecutions
Last Thursday Attorney General Jeff Sessions issued a memo on federal marijuana enforcement policy, including a rescission of previous guidance documents. In the memorandum, the Attorney General directs all U.S. attorneys to enforce the laws enacted by Congress and to follow well-established principles when pursuing prosecutions related to marijuana activities. The memo rescinds guidance issued in 2013, known as the Cole memo, which generally deprioritized prosecution of marijuana-related cases in states where marijuana had been legalized, as long as a strong regulatory and public safety approach was undertaken by the state. According to the National Conference of State Legislatures, 29 states and the District of Columbia have legalized medical marijuana, while eight states plus D.C. have legalized small amounts of marijuana for adult use.
Labor Releases Proposed Rule for Association Health Plans
The U.S. Department of Labor announced a Notice of Proposed Rulemaking last Thursday, to expand access to Association Health Plans for small businesses. The proposed rule, which applies only to employer-sponsored health insurance, would allow employers to join together, on the basis of geography or industry, as a single group to purchase insurance; the rule would also allow sole proprietors to join Small Business Health Plans. Under the proposed rule, the new coverage would not be required to offer the 10 essential health benefits that small group and individual plans must cover under the Affordable Care Act. The notice of proposed rulemaking is open for public comment until March 6. The rule was directed by Executive Order 13813, issued in October, which also directs the Secretary of Health and Human Services (HHS) to provide a report to the President identifying actions that states or the federal government could take to achieve the goals of the executive order; HHS is seeking comments from interested parties to inform its report and lay the groundwork for future action. Comments will be received through January 25, 2018.
Administration Proposes Expansion of Offshore Drilling
On Thursday Secretary of the Interior Ryan Zinke announced the Draft Proposed Program for developing the National Outer Continental Shelf Oil and Gas Leasing Program for 2019-2024. The program proposes to make over 90 percent of the total Outer Continental Shelf acreage and more than 98 percent of undiscovered, technically recoverable oil and gas resources in federal offshore areas available to consider for future exploration and development. The draft program includes 47 potential lease sales in 25 of the 26 planning areas – 19 sales off the coast of Alaska, 7 in the Pacific Region, 12 in the Gulf of Mexico, and 9 in the Atlantic Region. According to the department, inclusion of an area in the draft proposed program is not a final indication that it will be included in the approved program or offered in a lease sale, due to many remaining decision points. A 60-day public comment period will begin after publication of the program in the Federal Register. Additional information on the process can be found here.
Education Solicits Applications for Innovative Testing Pilot
Last week the U.S. Department of Education issued a notice inviting applications for new authorities for fiscal year 2018 under the Innovative Assessment Demonstration Authority. The testing pilot was established by the Every Student Succeeds Act, and provides state educational agencies (SEAs), including consortia of agencies, with the authority to establish and operate an innovative assessment system in their public schools. During the initial demonstration period of three years, no more than seven SEAs may participate. No funds are appropriated, but an SEA may use funds it receives under Grants for State Assessments and Related Activities to implement its innovative assessment system. The deadline for the notice to apply is February 2 and the deadline for transmittal of applications is April 2.
HUD Extends Deadline for Planning Under the Fair Housing Rule
On Friday the U.S. Department of Housing and Urban Development (HUD) published a notice extending the deadline for submission of an Assessment of Fair Housing by local government consolidated plan program participants until 2020. The assessment is required under the Affirmatively Furthering Fair Housing final rule, published in 2015, which required communities to analyze policies that contribute to segregation. A previous extension was granted in 2016 for communities that received a Community Block Development Grant of $500,000 or less. While extending the deadline for submission of the plan, the notice does not remove the obligation of communities to comply with existing requirements to affirmatively further fair housing. Comments on the notice are due by March 6.
CMS Releases CHIP Allotments for Short-Term Funding in Continuing Resolution
The Centers for Medicare & Medicaid Services (CMS) has calculated preliminary allotments for the Children’s Health Insurance Program (CHIP) for each state under the continuing resolution that was passed by Congress on December 21, 2017. The continuing resolution provides $2.85 billion in funding for CHIP allotments for the first half of FY 2018 that extends through March 31, 2018. This legislation modifies the methodology for calculating redistribution payments and specifies that, at this time, CMS should not recover redistribution grants already issued to emergency shortfall states. Last week the Congressional Budget Office issued a new cost estimate for S. 1827, the Senate bill to reauthorize CHIP for five years. The new estimate shows a cost over the next ten years that is smaller by $7.5 billion, mainly due to reduced direct spending related to the marketplaces after the tax bill repealed the individual mandate.
Recently Released Reports
Pharmaceuticals in State Prisons
The Pew Charitable Trusts
The Funded Status of Local Pensions Inches Closer to States
Center for Retirement Research at Boston College
Work Requirements in Social Safety Net Programs: A Status Report of Work Requirements in TANF, SNAP, Housing Assistance and Medicaid
Urban Institute
Selected Statistics from the Public Elementary and Secondary Education Universe: School Year 2015-16
National Center for Education Statistics
Economic News
Economy Adds 148,000 Jobs in December
New data released last week by the U.S. Bureau of Labor Statistics showed that total nonfarm payroll employment increased by 148,000 in December and the unemployment rate was unchanged at 4.1 percent. The new jobs added in December were below the 2017 monthly average of 171,000 jobs added. The data also shows that in December there were 6.6 million unemployed persons, essentially unchanged from November. The number of long-term unemployed (jobless for 27 weeks or more) was little changed at 1.5 million, accounting for 22.9 percent of the total unemployed. The labor force participation rate, at 62.7 percent, was unchanged over the month and over the year. In December, job gains occurred in food services and drinking places (25,000), health care (31,000), professional and business services (19,000), construction (30,000), and manufacturing (25,000). Retail jobs declined by 20,000, while employment saw little change for mining, wholesale trade, transportation and warehousing, information, financial activities and government. The average hourly earnings for all employees increased by 9 cents to $26.63 in December, following an increase of 5 cents in November. Over the year, average hourly earnings have risen by 65 cents, or 2.5 percent.