Editorial/Opinion: As California Dreams, States Deal With Reality

While Congress and the president recently hiked taxes for 77 percent of the nation’s taxpayers, proposals for sweeping tax cuts continue to gain momentum at the state level. As the White House and Congress seem determined to make the U.S. even less economically competitive, states like Kansas, Missouri and Oklahoma are considering a phase-out of their income taxes. The Wall Street Journal correctly calls it a “Heartland Tax Rebellion.”
Some analysts cited the fiscal cliff compromise and the passage of Prop. 30 in California – which increased income and sales taxes – as evidence the movement for fundamental tax reform has stalled. In the new year, however, an increasing number of governors and influential state lawmakers have announced income tax cuts as being among the top issues for their states in 2013.

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