September 16, 2008
Michael Sheehan

Physician's Money Digest, May 31 2003, Volume 10, Issue 10


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 taxes—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.