The Travails Of Cutting State Taxes

NPR | Feb. 22, 2013 7:26 a.m.

Contributed By:

David Schaper

Income tax cuts are all the rage this winter among Republican governors. There are no fewer than 10 of them proposing significant reductions in their states’ income tax rates. In fact, governors of neighboring states seem to be trying to one-up each other with tax cut proposals, urging businesses to move across the border. In most cases, the GOP governors are looking to raise or expand the sales tax to make up lost revenue. But in Indiana and a few of the other states, the governors are getting pushback from their fellow Republicans.

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