North Carolina’s Republican-led legislature returns to session Tuesday at odds with the state’s Democratic governor—and itself—over whether to pause the state’s planned personal and corporate income tax cuts to address a potential $2.8 billion budget deficit in two years.
Nearly 5,000 miles away, Hawaii’s Democratic lawmakers are seeking to reconcile differences on how to avoid freezing $1.8 billion in personal income tax cuts the state passed just two years ago.
The disagreements highlight the financial risk for states that enact tax cuts that gradually phase in over many years. States often set up annual triggers that ...