Individual state tax cuts..

[Steff]

Outlook good for tax cuts by states

Dennis Cauchon, USA TODAY

Fri Nov 18, 7:32 AM ET

 

 

 

Soaring state tax collections have created momentum for tax cuts in 2006, when most governors and legislators will face voters.

 

 

State and local revenue rose 7.2% in the first nine months of this year, the biggest jump since 1990, according to the U.S. Bureau of Economic Analysis. Spending is up 6%, the most since 2001.

 

 

Three years of strong revenue growth have left many states with large surpluses. New Mexico is looking at a $1 billion surplus. Florida expects more than $3 billion.

 

 

Even financially troubled California took in $3.4 billion more than it spent in the budget year that ended June 30 - the state's first surplus since 2000. California's deficit was erased by a 13.2% revenue increase.

 

 

"Every month we're surprised by the good news and say it has to slow down. But it hasn't," says Arkansas Gov. Mike Huckabee, chairman of the National Governors Association. His state had record revenue in October and expects a $200 million surplus this year.

 

 

Personal and corporate income tax collections have been unexpectedly strong in most states. States that tax energy production and real estate construction have enjoyed enormous windfalls, too.

 

 

Most decisions on what to do with the surpluses will be made starting in January when governors present budgets and many legislatures meet again.

 

 

Nearly every state is considering tax cuts. What's not in favor: big reductions in income tax rates. Instead, smaller cuts aimed at property taxes, business taxes and sales taxes on food are under consideration.

 

 

One-time income tax rebates also are expected. New Mexico residents are getting 770,000 refund checks this week, averaging about $140 each.

 

 

South Carolina Gov. Mark Sanford, a Republican, says his state needs lower income tax rates. But he won't push for them now because legislative leaders want to reduce property taxes and the sales tax on food. "Public policy is driven by popular sentiment, and people are angry at the sticker shock from property tax bills," Sanford says.

 

 

What's on the agenda for tax cuts:

 

 

•Sales tax on food. Republican leaders in Utah, South Carolina and West Virginia have made this a top priority. Twelve states charge their full sales tax on food; four tax food at a reduced rate.

 

 

•Property tax relief. North Dakota is considering a typical proposal: Cap local property taxes and have the state reimburse schools and local governments from surplus revenue.

 

 

•Business tax cuts. Michigan Gov. Jennifer Granholm, a Democrat, and the Republican-led Legislature want to cut $1.4 billion in taxes over six years. New Hampshire may reduce its tax on small businesses.

 

 

Louisiana is an exception to the revenue boom. In response to Hurricane Katrina, the Legislature is meeting to cut $1 billion from an $18 billion budget and approve tax breaks for businesses and individuals.

[NUKE_CLEVELAND]

Wasn't it only a year or so ago that the states were all in dire financial shape and on the verge of meltdown and it was all Bush's fault?

 

 

Guess who won't be getting any of the credit for the turnaround.

 

 

:rolly

[southsider2k5]

LMAO. So all of the government officials can scream their heads off about the energy companies record profits, but they aren't saying a damned thing about the record fuel tax and sales tax receipts from energy are they? Can we supena them to testify under oath about why they aren't sharing this money with people who need help paying their heat/electric bills instead of pandering to more popular things like property tax relief?

 

Hypocrates.

[NUKE_CLEVELAND]

LMAO.  So all of the government officials can scream their heads off about the energy companies record profits, but they aren't saying a damned thing about the record fuel tax and sales tax receipts from energy are they?  Can we supena them to testify under oath about why they aren't sharing this money with people who need help paying their heat/electric bills instead of pandering to more popular things like property tax relief?

 

Hypocrates.

 

 

 

Socialism is great just as long as you aren't the one having to pay for it all.