October 1, 1992
Special Report No. 9
Executive Summary
Following the record tax increase of $1.7 billion for FY'92, state governments have enacted tax increases for FY'93 that will total $5.5 billion. Taxpayer anger at the large hikes in FY'91 and FY'92 has forced many states to moderate new demands this year, despite current budgetary stress caused by record state spending and a weak economy. The largest increases this year were in general sales taxes, motor fuel taxes, and health care provider taxes.
This year's tax increase will further erode after-tax personal income. From 1981 to 199I, state taxes grew at 6.6 percent annually while personal income grew at a lower 5.7 percent clip. Tax growth outpaced income growth in 43 states.