DENVER — Prices may be going up but income taxes are going down, thanks to an unparalleled outbreak of state tax cuts.
Starting Jan. 1, millions of Americans will bring home fatter paychecks as individual income rates fall in a dozen states, marking the second consecutive year in what the Tax Foundation calls “an unprecedented wave of tax reductions and other tax cuts.”
Jared Walczak, Tax Foundation vice president of state projects, chalked up the tax-cutting fervor to a perfect storm of pandemic revenue growth, high inflation, greater worker mobility and increased intrastate competition for employers and employees.