With many states running very large deficits, 2009 has been the year of major state tax law changes. Most states have been forced to implement these changes just to keep their doors open. California and Gov Schwarzenegger have been very visible recently with their budget problems and iou’s. See Best and Worst States: Schwarzenegger Fights for California
The New York Post today ran a story State’s a Wreck? Party! It featured NY Gov Patterson partying just before reporting a soaring deficit. The story attributes part of New York’s problem to high income people movingout of NY for better tax environments. While NY has passed many new taxincreases, many states have been doing the same. Tax increases unfortunately do not help an ailing economy.
The Tax Foundation has just printed for 2009 its First Ever Mid-Year Update of Facts and Figures: How Does Your State Compare? “Many states have started the new fiscal year with tax codes that arevastly different compared to just a few months ago,” Tax FoundationPresident Scott Hodge said. The changes are so many that you need to go through the book to understand them all.
Best and Worst States has reported on some of the changes yet we would encourage you to check the publication out. Keeping up with the Best and Worst States for Taxes requires a playbook. Lots of useful information. It may make you rethink the state you live in.