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Trump’s big bill is prompting urgent action in some Democratic states, but not in Republican ones
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The Seattle Times The Seattle Times
The special session follows one in Colorado, where the Democratic governor asserted Trump’s tax cuts wreaked havoc on the state’s budget.
Federal tax cuts could reduce revenues for states that link their own income taxes to the federal code, starting with 2025 tax returns.
“We’re not going to sit idly and watch that disaster happen,” said Democratic state Senate Majority Leader Peter Wirth.
The Democratic-led Legislature filled part of that gap by eliminating some corporate tax breaks and authorizing the sale of state tax credits to raise revenue.
In Oregon, Democratic officials are weighing whether to decouple from some of Trump’s tax changes to avoid losing hundreds of millions of state tax dollars.