As many as 43 states and the District of Columbia could lose up to $5.5 billion in tax revenue through 2011 if they do not take steps to "decouple" their tax laws from the federal tax code because of a little-noticed provision in the American Recovery and Reinvestment Act, a new report warns.

The revenue losses would come at a time when most states already are facing significant budget shortfalls, notes the report, which was released yesterday by the Center on Budget and Policy Priorities.

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