States Turn to Tax Increases
July 2, 2003
During what the National Governors' Association calls the worst financial crisis since World War II, states are borrowing record amounts to meet their debts.
Other states are raising taxes:
- Arkansas, Nebraska, and New York have raised income taxes.
- Idaho, Nebraska, New York, Ohio and Vermont increased sales taxes.
- And eight states were still debating their budgets as of yesterday.
- Tax collections rose only 1 percent in the first nine months of the budget year that ended Monday, the Census Bureau reports.
- Higher taxes on cigarettes and liquor accounted for nearly all of that increase.
Tax collections rose only 1 percent in the first nine months of the budget year which ended Monday.
Source: Dennis Cauchon and Patrick McMahon, "States Borrow Record Amounts," USA Today, July 1, 2003.
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