Answer:High marginal tax rates can discourage work, saving, investment, and innovation, while specific tax preferences can affect the allocation of economic resources. But tax cuts can also slow long-run economic growth by increasing deficits.Your income tax liability may change based on the state you're in, but you should expect to file taxes for both states: one return as a resident for the state where you live and a separate return as a nonresident for the state where you work. Learn more about filing taxes as a remote employee.
