State Tax Trends, 1981 – 2006
A research study of state tax trends (requires Adobe) by Americans for Tax Reform, released last month, shows that tax increases are down, but that revenue sources are shifting. Among the key points found during the research study:
+ State policy has “fundamentally changed” because the restructuring of state economies has forced policymakers to adopt more competitive policies. In addition, “the tax issue has become more potent in political campaigns.”
+ “Tax increases are getting smaller . . . Tax cuts during growth periods are becoming more prevalent . . . Revenue sources have shifted away from income taxes.”
ATR concludes that “(d)espite the progress on taxes over the last 25 years, more needs to be done to build on this foundation.” We agree!