Fergus Hodgson has documented for us the fact that North Carolina state government spending reached a record-high level during the current budget year.
Now the Tax Foundation tells us:
The U.S. Census Bureau reported recently that state tax collections in 2011 grew by 9 percent over the previous year, reaching a level second only to the bubble year of 2008. Since 1997, state tax collections have grown an average of 4 percent, but because spending projections exceeded this rate, many states have struggled to balance their budgets while ensuring their tax systems are competitive.
The Tax Foundation compiled a list of top 10 state tax trends from 2008 to 2012:
1. “Millionaires’ taxes”
2. Income tax reform
3. Corporate tax reductions
4. Sales tax increases
5. “Amazon” taxes
6. Tax abolition
7. Collapsing unemployment insurance systems
8. Insufficient rainy day funds
9. State abuse of Medicaid matching funds
10. Cigarette tax increases tapering off
