Download Special Report No. 85
Executive Summary
State tax and fee collections grew by 5.9 percent between 1996 and 1997. The growth in inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. -adjusted taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. collections continues a trend that began more than a decade ago.
The fastest growing category of state collections was estate and gift taxes which rose 11.4 percent. “Other taxes,” a catch-all category that includes amusement sales, pari-mutuel sales, documentary & stock transfer taxes and miscellaneous taxes (mostly other sales taxes), were up 11 percent . Individual income taxes rose more rapidly than usual at an 8.1 percent clip in 1997.
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