Economics and Finance

CSG Midwest
Income tax relief is coming to residents in at least two Midwestern states this biennium, while in a third state, legislators took the first step this year toward a major tax overhaul. In Wisconsin, under AB 56 and AB 251, rate reductions are being made to the state’s bottom two income-tax brackets. (Wisconsin’s graduated system has four tax brackets.)
CSG Midwest
With her signing of an executive order in August, Kansas Gov. Laura Kelly pronounced the end of a longstanding “economic border war” between her state and Missouri. Her action, combined with legislation passed in Missouri this year (SB 182), stops the two states from offering tax incentives to companies in the Kansas City region. For the war to truly end, The Wichita Eagle reports, local governments on both sides of the border need to follow the states’ lead. Because they are not bound by the Kansas executive order or new Missouri law, cities and counties could still offer property tax abatements to lure businesses.

On Sept. 3, 2019, Virginia became the first state to fully digitize its professional licensing and credentialing system. Many professions take advantage of current technology to offer digital copies of licenses and certifications, but before September, no state offered universal electronic licensing. Through a partnership between the Virginia Department of Professional and Occupational Regulation and the free online credentialing service, Merit, all licensed professionals in Virginia will be able to receive a digital copy of their...

Occupational licensure is one of the most overarching labor market issues facing low-income workers. The proportion of the labor force required to obtain a license exceeds that of both minimum wage earners and union members.1,2,3 The costs of licensing, such as exams, training courses, continuing education, and application and renewal fees, can present significant barriers to work, particularly for those for whom money is the tightest: Americans who are low-income, unemployed, and/or dislocated workers.  

On July...

If you’ve studied the issue of occupational licensing reform for any length of time, you’ve undoubtedly heard about African hair braiders. The issue of state government regulating the hair braiding industry is a compelling one. Why would a state subject a hair braider to obtain a full cosmetology license, endure hundreds of hours of unnecessary coursework and pay thousands of dollars before they can legally work? Furthermore, the courses required to obtain the required license do not even directly apply to hair braiding but are more...

Often a licensed professional wishing to enter into a new state finds difficulty obtaining the license needed to practice their profession. The delay in obtaining their professional license could mean a lack of income, lost employment opportunities or even a decision to not move into the state.

On July 1, 2019, Gov.  Tom Wolf signed HB 1172 which...

The Council of State Governments hosted policymakers from across the country in June for the first meetings of its two national task forces: Healthy States and The Future of Work.

CSG Midwest

The three new laws that legailze sports betting vary in significant ways, including where the activity is allowed to occur and whether wagering on college sports is allowed.

The Supreme Court’s holding in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust is narrow, precise, and unanimous. The presence of in-state beneficiaries alone does not allow a state to tax undistributed trust income where the beneficiaries have no right to demand that income and may never receive it.

The Kimberley Rice Kaestner trust is governed by New York law and its trustee is a New York resident who has “absolute discretion” to distribute the trust. When the trustees, Kimberley Rice Kaestner and her children, lived in North Carolina the state taxed the income of the trust even though no funds were distributed during the time period. The trust sued North Carolina seeking the $1.3 million it paid in taxes. The trust argued that the tax violated the Due Process Clause of the Fourteenth Amendment.  

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In his 2019 State of the State address, Arizona Gov. Doug Ducey, former CSG Toll Fellow, urged the Legislature to pass legislation granting universal recognition for occupational licenses, saying “workers don’t lose their skills simply because they move to Arizona.” HB 2569 which was signed into law by Gov. Ducey in April, makes Arizona the first state in the country that allows an individual licensed in another state to receive a comparable license upon moving to Arizona if they meet certain criteria.

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