EXPLAINER: Tax cut trend reaches two-thirds of states
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By DAVID A. LIEB
Associated Press
JEFFERSON CITY, Mo. (AP) — About two-thirds of U.S. states have adopted some sort of tax relief this year. The tax-cut trend has been fueled by record state surpluses and large growth in state revenues after an initial downturn during the coronavirus pandemic. Missouri became the latest state to act, when Republican Gov. Mike Parson signed an income tax cut into law Wednesday. Republican-led states have been more apt to approve permanent tax rate reductions. Many Democratic states, meanwhile, have opted for one-time tax rebates. A bipartisan collection of states also have suspended gas taxes or cut sales taxes on groceries.