Taxes

States aren’t sweating flat revenues as tax cuts take effect

It’s a departure from the chaotic pandemic years, when forecasters braced for a recession that never came.
(AP Photo/Elise Amendola, File)

The typical state is collecting about 1% less in personal income tax dollars this fiscal year as wage growth slows and tax cuts kick in, new data from the Urban Institute think tank shows.

Overall, collections across the three main tax types — personal income, corporate income, and sales — are essentially flat compared to the first 10 months of Fiscal Year 2023, which for most states ended June 30.

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