Download Special Report No. 95
Special Report No. 95
Executive Summary State tax and fee collections grew by 7.1 percent between FY 1997 and FY 1998. This growth in 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 is substantial even when adjusted for 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. , and it continues a decade-long trend.
The fastest growing category of state collections was estate and gift tax collections which rose 17.4 percent. Individual income taxes rose rapidly at an 11.1 percent clip in FY 1998. “Other taxes” were up 9.8 percent. This is a catch-all category that includes amusement sales, pari-mutuel sales, documentary and stock transfer taxes and miscellaneous taxes (mostly other sales taxes).
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