Special Report No. 9
Executive Summary
Following the record tax increase of $1.7 billion for FY’92, state governments have enacted tax increases for FY’93 that will total $5.5 billion. Taxpayer anger at the large hikes in FY’91 and FY’92 has forced many states to moderate new demands this year, despite current budgetary stress caused by record state spending and a weak economy. The largest increases this year were in general sales taxes, motor fuel taxes, and health care provider taxes.
This year’s tax increase will further erode after-tax personal income. From 1981 to 199I, state taxes grew at 6.6 percent annually while personal income grew at a lower 5.7 percent clip. Tax growth outpaced income growth in 43 states.
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 FoundationShare This Article!
Let 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