Greetings for the new year.
As we enter 2021, the state tax landscape remains dynamic as many states continue to navigate the fiscal challenges resulting from COVID-19. How they close revenue gaps may include both cost-cutting measures and new or expanded taxes. Increasing taxes on high income individuals, decoupling from federal tax legislation aimed at alleviating the impact of COVID-19, and closing the perceived ‘carried interest loophole’ are some of the possible tax changes that may be considered that would affect the Asset and Wealth Management industry. This article addresses some of the key state tax issues in 2020 and what we may see in 2021.
The new year undoubtedly will bring challenging state tax issues, technology advances that may expand efficiencies across the compliance process, and opportunities to develop new relationships and strengthen existing ones. I look forward to working with you in each of these capacities in 2021.
SALT Asset and Wealth Management Leader
Partner, PwC US