1.

"Millionaires' Taxes"

6.

Tax Abolition

2.

Income Tax Reform

7.

Collapsing Unemployment Insurance Systems

3.

Corporate Tax Reductions

8.

Insufficient Rainy Day Funds

4.

Sales Tax Increases

9.

State Abuse of Medicaid Matching Funds

5.

"Amazon" Taxes

10.

Cigarette Tax Increases Tapering Off

 

The U.S. Census Bureau reported recently that state tax collections in 2011 grew by 9 percent over the previous year, reaching a level second only to the bubble year of 2008. Since 1997, state tax collections have grown an average of 4 percent, but because spending projections exceeded this rate, many states have struggled to balance their budgets while ensuring their tax systems are competitive.

We've identified the top ten key tax trends among the states in recent years. We'll be sharing them with you over the next two weeks, with a short report each weekday with data and analysis on each trend.

We hope this information will help you learn how states responded to the recession, how they're faring now, and how prepared they are for the future. The series kicks off Thursday with an overview of state budgets and state tax changes during 2011, and then we'll share the #10 trend on Monday, June 4.

To make sure you receive these and all other Tax Foundation reports on state taxes, be sure to subscribe to our e-mail list at http://taxfoundation.org/tax-foundation-e-mail-updates. (You can unsubscribe at any time from any Tax Foundation e-mail.)

May 30, 2012

The U.S. Census Bureau reported recently that state tax collections in 2011 grew by 9 percent over the previous year, reaching a level second only to the bubble year of 2008. Since 1997, state tax collections have grown an average of 4 percent, but because spending projections exceeded this rate, many states have struggled to balance their budgets while ensuring their tax systems are competitive.

We've identified the top ten key tax trends among the states in recent years. We'll be sharing them with you over the next two weeks, with a short report each weekday with data and analysis on each trend.

 

1.

"Millionaires' Taxes"

6.

Tax Abolition

2.

Income Tax Reform

7.

Collapsing Unemployment Insurance Systems

3.

Corporate Tax Reductions

8.

Insufficient Rainy Day Funds

4.

Sales Tax Increases

9.

State Abuse of Medicaid Matching Funds

5.

"Amazon" Taxes

10.

Cigarette Tax Increases Tapering Off

We hope this information will help you learn how states responded to the recession, how they're faring now, and how prepared they are for the future. The series kicks off Thursday with an overview of state budgets and state tax changes during 2011, and then we'll share the #10 trend on Monday, June 4.

To make sure you receive these and all other Tax Foundation reports on state taxes, be sure to subscribe to our e-mail list at http://taxfoundation.org/tax-foundation-e-mail-updates. (You can unsubscribe at any time from any Tax Foundation e-mail.)

May 24, 2012

On May 22 Maryland Gov. Martin O'Malley signed into law a bill raising income taxes and tobacco taxes and ending certain business tax breaks. The bill increases tax rates for single filers making over $100,000 ($150,000 for a couple) with a new top rate of 5.75% on income over $250,000 ($300,000 for a couple). It also cuts the personal exemption for each member of families with income over these thresholds. We've been covering the Maryland budget story here and here.

The bill also raises taxes on snuff and smokeless tobacco from 15% to 30% and the rate on 'little' cigars to 70%. Finally, the bill repeals telecommunication utilities' corporate tax credits for property taxes and includes in taxable income some of the income from small business trusts.

Maryland's legislature went into a special session beginning May 14 when the regular session ended without passing a budget. Lawmakers were motivated by the prospect that the state would turn to a so-called doomsday budget, where the projected increase of the budget would be cut by $500 million. Nonetheless, under the doomsday scenario, Maryland's budget would have increased by $700 million, or 2%, over last year.

More on Maryland here.

Single Filers

Bracket

Old Rate

New Rate

>$0

2%

2%

>$1,000

3%

3%

>$2,000

4%

4%

>$3,000

4.75%

4.75%

>$100,000

4.75%

5%

>$125,000

4.75%

5.25%

>$150,000

5%

5.5%

>$250,000

5%

5.75%

>$300,000

5.25%

5.75%

>$500,000

5.5%

5.75%

 

Married Filers & Head of Household Filers

Bracket

Old Rate

New Rate

>$0

2%

2%

>$1,000

3%

3%

>$2,000

4%

4%

>$3,000

4.75%

4.75%

>$150,000

4.75%

5%

>$175,000

4.75%

5.25%

>$200,000

5%

5.25%

>$225,000

5%

5.5%

>$300,000

5%

5.75%

>$350,000

5.25%

5.75%

>$500,000

5.5%

5.75%

 

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