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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Author: UpNorthJoe ✭☼🐝  😊 😞
Number: of 86278 
Subject: OT 2026 State Income Tax
Date: 11/17/25 9:02 PM
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An AI generated blurb just popped up onto my notifications. It says that there are multiple States that are revising their 2026 State Tax code in order to counteract
the effect of Trump's specific new tax benefits for 2025 tax returns ( due in April
of 26 ).
"These jurisdictions are rejecting certain provisions from the Federal One Big Beautiful Bill, signed in July of 2025".

The main reason being that many States base their income tax calculation on Federal Taxable Income ( MAGI, I know for certain Michigan does ). It was pointed out that the $6,000 extra deduction that many post 65 year olds will get could wreak havoc on State Tax Revenues.

I'd like to say that is pretty amazing that Trump would not have coordinated and or consulted with the States, maybe ask if his haphazard tax cuts would be problematic to States, and ask to work with them to iron out any issues.
Yeah, I'd like to think that, but it is par for the course that Trump and the "brains" behind his "policies" didn't show any foresight or planning initiatives.
Kind of exactly like his tariff policies, lol.

So if there is anybody out there thinking that their reduced Federal Adjusted Gross Income is going to lead to a lower State Tax bill, doublecheck your work. The States are not going to sit back and let Trump's fiscal boneheadedness drive them over a fiscal cliff, and they are taking steps to ensure that their tax code will sift thru the Federal breaks that the OBBB are going to give us all.

Don't get me wrong, I dislike paying taxes as much as anybody, but I also realize they are a necessary evil. While Trump may BK the Federal Government just like he BK'd his
AC Casinos, States are at least trying to take steps to counteract his rash, foolhardy
Ready-Shoot-Aim methods.

Plan on paying State tax amounts at the same rate as last year.
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This community has written 86,214 posts about US Policy. The article-length ones it recommended most:
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