Virginia Ponders Impact of Federal Tax Cut Package
RICHMOND, Va. (AP) - The recent federal tax overhaul probably means Virginia will collect more state tax revenue - but from whom and how much are still unknown.
Secretary of Finance Aubrey Layne told lawmakers Wednesday that the impact of the federal tax changes is so complicated that the state needs an outside consultant and a couple more months to figure it all out.
The changes affect taxes incurred this year but possibly paid next year.
Layne says the federal changes will impact various state taxes in different ways. But he says it's likely that Virginia's state government will benefit from more state taxes being paid overall.
The extra tax revenues may not necessarily induce lawmakers to cut state tax rates because of concerns over future cuts in federal aid to the state.