Taxes

Tax cuts scaled back as revenue growth slows, reductions kick in

There was $20 billion less in cuts proposed or enacted so far this year than in 2023.
The Arizona Capitol in Phoenix. (AP Photo/Ross D. Franklin, File)

After aggressively cutting taxes during the Covid-19 pandemic, state lawmakers are acting with more caution this year as revenue growth slows and planned rate reductions kick in.

States proposed or enacted just $6.3 billion in new cuts so far this year, dramatically less than the $26.1 billion in cuts made last year and $40.2 billion in 2022, according to a recent analysis by Fitch Ratings, a credit rating agency. Fitch’s total includes rate cuts, rebates and credits.

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