MoneyWise :: State tax hikes could go too far

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Released: August 24, 2010

State tax hikes could go too far

Source: Ben Rooney, CNNMoney.com

Some U.S. states facing steep budget gaps have resorted to tax policies that could be harmful over the long term, a non-profit research group said Monday.

In a review of 2010 changes in state tax policy, the Tax Foundation said certain states have targeted tax increases on high-income earners, smokers and out-of-state business transactions. These taxes may be politically convenient, but the foundation said that relying too heavily on such sources can lead to problems over the long run.

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