Treasury says state tax cuts OK if separated from virus aid
The nonprofit Tax Foundation said in an analysis last week that state tax cuts financed by natural growth in state revenue or new tax hikes likely are fine under the federal law. The Republican-led Oklahoma House last week passed bills to reduce the corporate and individual income tax rates and restore the ability for a refund of the earned income tax credit. AdThe Republican-controlled Mississippi House has passed legislation that would phase out the state income tax, cut the grocery tax in half and increase the sales tax on most items. Laura Kelly, who vetoed two GOP tax-cutting bills in 2019, welcomed the restrictions on using federal pandemic aid to offset tax cuts. “I’m glad that we can’t use this money for tax cuts," Kelly said.