Ruth Mason, Delegating Up: State Conformity with the Federal Tax Base, 62 Duke L.J. 1267 (2013).
In contemporary governance, while the U.S. Constitution recognizes the fifty states as sovereign entities, federal and state governmental policies and operations are functionally quite intertwined. Nevertheless, state governments frequently like to show flashes of independence, particularly on hot button political issues. Hence, we have seen states like California and Massachusetts getting ahead of their federal counterparts in adopting laws and policies to protect the environment and embrace gay marriage. On the opposite side of the political spectrum, we have states like North Dakota, Texas, and Arizona challenging federal laws and policies regarding abortion rights, health care, and immigration.
Tax policy ranks among the more heated issues in modern politics. Politicians argue a lot about what rates to apply to which taxpayers, but the tax policy debate is not limited to tax rates. It is strange, therefore, just how little state individual income tax regimes differ from their federal counterpart. State tax laws tweak the federal model here and there around the edges, but in the main, all of the states that impose a broad-based income tax rely either explicitly or implicitly on federal tax laws to define their tax base. In her thoughtful article, Delegating Up: State Conformity with the Federal Tax Base, Ruth Mason thoroughly documents and persuasively challenges federal and state lawmakers to think more carefully about the consequences of this phenomenon. Continue reading "Recognizing and Rethinking Federal-State Tax-Base Conformity"