The Empire 452

States: It's taxes, taxes and more taxes
Desperate to balance budgets, states are hiking income and sales taxes on
people and businesses.

Last Updated: May 20, 2009: 12:22 PM ET

NEW YORK (CNNMoney.com) -- Facing mounting budget deficits and seeing few
areas left to cut spending, states increasingly are turning to the only
option they have left: raising taxes.

Though public officials are loath to do this, particularly during a
recession, many governors are increasing personal income taxes, raising
corporate income taxes, hiking cigarette and gas taxes, or broadening sales
taxes.

Already, 16 states have taken this unpopular step this fiscal year, and
another 17 have proposed tax hikes for the coming year, according to the
Center on Budget and Policy Priorities, a policy group. In many cases, they
are making small increases in specific taxes, rather than imposing a broad
rate hike.

"The question isn't whether to raise taxes, it's which taxes to raise,"
said Linda Bilmes, professor of public finance at Harvard's Kennedy School
of Government.

Wealthier residents in Hawaii are now paying higher personal income taxes.
The state increased the tax rate to 11% for single filers earning more than
$200,000 and couples making more than $400,000, while also raising levies
on hotel accommodations and real estate purchases.

Smokers in Rhode Island, meanwhile, now pay the highest state tobacco taxes
in the nation, forking over an additional $1 for a total of $3.46 in state
levies per pack.

Lees verder: http://money.cnn.com/2009/05/20/news/economy/state_tax_increases/index.htm