State squeeze.

• Author: Sanchez, Julian
• Position: Data

Debates about tax policy and the economy usually focus on federal taxes. But even as President Bush argues for the extension of his tax cuts, a study conducted by Ernst & Young for the Council on State Taxation finds state and local taxes on businesses--including property, sales, and corporate income taxes--growing at an accelerating rate. From fiscal year 2000 to fiscal year 2003, in a foundering economy, state and local taxes on businesses grew by 8.3 percent, or 2.7 times faster than nonbusiness taxes, accounting for some two-thirds of state and local revenue growth. And the trend was toward higher growth...