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Across the political spectrum there is broad agreement that tax reform is long overdue. Yet reform remains an elusive goal—not just in Washington, but also at the state level. Ideological standoffs, the excessive influence of special interests, the impending midterm elections, and mistrust of government are just some of the road blocks to reform.In Congress, House Ways and Means Committee Chairman Dave Camp has unveiled an ambitious blueprint for sweeping tax reform. President Obama’s new budget calls for closing a raft of tax loopholes to pay for new investments in infrastructure. Despite all the political attention now being lavished on the federal tax code, however, almost no one is talking about tax reform at the state level. That’s a problem, because state tax systems tend to mirror the flaws so evident in our federal tax code: They are regressive, economically distorting and absurdly complex. In state houses as in Washington, the inexorable growth of special tax preferences—or ta...