In U.S., many states are planning to exploit their multibillion-dollar budget surpluses to cut business taxes to promote investors and be more competitive in the global economy. Few states also plan to reduce their personal income taxes.
National Association of State Budget Officers said that Forty-six states report revenue exceeding projections and State budget surpluses and reserve funds are at their highest level since 2000.
But tax-cut advocates have frustrated with the decision and complain that governors and legislators are too timid.
Demand for more spending is limiting individual income tax cuts as most of governors wants to fulfill their promises to improve health and education system in their state.
State tax collections increased 8.5% in 2006 compare to a year earlier.
Georgia, Kentucky, Missouri, Texas and West Virginia are among states considering business tax cuts. Hawaii, Nebraska and South Carolina are among the few studying personal income tax cuts.
Via: usatoday
