2012 Could Be Banner Year for State Tax Increases

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

State tax policy analysts tell BNA that a dispute between the governors of Illinois and New Jersey over tax policy points up the difficult choices states will be forced to make in coming weeks as FY 2012 budgets are drafted and enacted. The analysts agree that several states simply will not have the option of cutting their way out of their budget messes. In addition to Illinois, likely targets for tax increases include Arizona, California, Connecticut, and Hawaii. And while lawmakers in Michigan, New York, Wisconsin, and New Jersey insist they will not raise taxes, they may be forced to swallow some type of revenue increase.