About two thirds of America'sstates have budgets that are deep indeficit and that may signal highertaxes, despite many gubernatorialpromises to hold the line. States arefacing some $68 billion in deficitsfor 2004. Almost half of the statesare looking at proposals for highertaxes, although most of the increasesare in the form of so-called "sin"taxes. Cigarettes and alcohol aretargeted for higher levies in severalstates, and about a half dozen arethinking about bumping up salestaxes. Just 4 states, however, areleaning toward raising personalincome taxesâ€”California, Connecticut,Missouri, and Montana. Althoughmany states hope to squeezeby with a bevy of noncontroversialspending cuts, tax increases may beunavoidable for some. Start budgeting for higher statetaxes in the years ahead.