TaxNews.com reports that states are changing their tax codes in an effort to raise revenues and reduce budget deficits:
Falling tax revenues, rising expenditure and widening budget deficits are forcing many US states to make frequent changes to their tax codes to cope with the worst budgetary crisis for several years.
According to the fiscal policy organization the Tax Foundation, many states have started the new fiscal year with tax codes that are “vastly different” compared to just a few months ago.
Ten states that passed budgets before the end of the 2009 fiscal year on June 30 made major changes to personal income taxes – including three rate cuts – most of which are retroactive to January 1 of this year. Another four increased sales taxes, and several more looked to “sin taxes” for budget solutions.
The Rockefeller Institute of Government reported recently that taxes collected by the 50 states during the first quarter of 2009 suffered their sharpest year-on-year decline in the 46 years since such data has been available, at 11.7%.
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