Current State Tax Proposals Roundup
As March 1st approaches, most of the country’s governors have submitted their budget proposals to their respective legislatures. Here is a quick rundown of some of the notable tax proposals. Those hyperlinked have been blogged on recently.
Connecticut: Governor Rell proposed to raise the state’s income tax on income over $10,000 from 5 percent to 5.5 percent and raise the cigarette tax.
Florida: A proposal from the speaker of the house to lower local property taxes by increasing the sales tax 50 percent. Another in the growing trend of property-tax-decreases-for-sales-tax-increases proposed around the country.
Illinois: Governor Blagojevich is reported to be proposing a gross receipts tax on top of the state’s sales tax and corporate income tax. Check out two recent Tax Foundation papers on gross receipts taxes to learn why this is a disastrous idea here and here.
North Carolina: Governor Easley wants to delay scheduled decreases in the state’s sales tax and income tax that were originally temporary increases scheduled to phase out years ago.
Pennsylvania: Governor Rendell proposed the increasingly popular property-tax-decrease-for-sales-tax-increase swap, in addition to a windfall profits tax on oil companies and a cigarette tax hike.
In addition to these proposals, 14 states, including Connecticut and Pennsylvania mentioned above, are proposing to increase cigarette taxes. They include: Delaware, Indiana, Iowa, Maine, Maryland, Michigan, Mississippi, New Hampshire, Oregon, South Carolina, Tennessee and Wisconsin.
Was this page helpful to you?
Thank you!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationLet us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback