Cash-rich states create ‘competitive environment’ with flurry of tax cuts
There’s been a wave of state-level tax cuts spurred by budget surpluses, and more breaks may be coming, according to policy experts.
“States have a lot of revenue on hand and they are looking to return it to taxpayers,” said Katherine Loughead, senior policy analyst at the Tax Foundation.
In 2021, 29 states and the District of Columbia enacted “significant” cuts, according to the Tax Policy Center, typically through reduced individual rates or expanded earned income tax credits, a write-off for low- to moderate-income families.
