Federal tax reform may put added pressure on state and local governments that already face severe fiscal challenges. Tax-exempt bonds and the deduction for state and local taxes are among the major preferences likely to come under scrutiny in any rewrite of the Revenue Code. In addition, lower income tax rates themselves would limit the market for tax-exempt debt. As a result, tax reform is likely to have significant policy and revenue implications for state and local governments and will raise important questions about federalism.
John Buckley, Professor, Georgetown Law School
Harley Duncan, Managing Director, KPMG LLP
Howard Gleckman, Resident Fellow, Urban-Brookings Tax Policy Center (moderator)
Kim Rueben, Senior Fellow, Urban-Brookings Tax Policy Center
Frank Shafroth, Director, Center for State and Local Government Leadership, George Mason University