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States Reject Federal Tax Cuts Amid Revenue Concerns

2/12/2026

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Story summary
  • In February 2026, Colorado, Delaware, and Washington, D.C., moved to exclude new federal tax cuts from state tax codes.
  • The moves respond to revenue losses from tax breaks introduced by Republicans in Congress.
  • The federal tax law includes overtime pay and business tax breaks that could raise state tax burdens.
  • Local officials warned the changes could affect tax filing.
  • Republicans urged Washington, D.C. to adopt these federal cuts.