About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Mark Robyn & Kail Padgitt, Some States Respond to Budget Shortfalls with Tax Increases 1 (2009)

handle is hein.taxfoundation/ffbhhxz0001 and id is 1 raw text is: UFISCAL July 2009FACT No. 177 Some States Respond to Budget Shortfalls with Tax Increases By Mark Robyn and Kail Padgitt Introduction The 2010 fiscal year began on July 1 in 46 states, so this is a logical time to take stock of the state- level tax changes enacted so far this year. Due to lower-than-expected revenues, states that have no rainy day fund have faced the choices that every state budget crunch poses: scrapping plans for new spending, cutting spending on existing programs, or raising taxes. Almost every state has cut spending, but some were not willing to balance their budgets without raising taxes as the 2009 fiscal year wound down. This Fiscal Fact will highlight three categories of taxation that have been particularly susceptible to changes this year: personal income tax, sales tax and excise taxes. Seven states have raised income taxes in 2009; three lowered them. Four states have raised sales taxes, ten states raised cigarette taxes, and two states have raised excise taxes on alcohol. Income Tax Ten states have made significant changes to personal income taxes during 2009, most of them retroactive to January 1, 2009. Three found ways to lower their tax rates, and among the seven that increased them, new personal income tax rates targeted at higher-income filers were the most common additions. Many of the new taxes are scheduled in law to expire after two or three years; some are permanent. California added 0.25% to each income tax bracket in May, retroactive to January 1 and expiring on December 31, 2010. In a departure from the norm, California's income tax increases were spread over the whole income distribution, rather than targeting only high income earners. While the state has had a millionaire's tax for several years, the recent Mark Robyn and Kail Padgitt, Ph.D. are staff economists at the Tax Foundation.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most