Cash-Rich States Lower Taxes

The economic turnaround sparked a wave of cuts in state tax rates. But some say the efforts could backfire.

Illustration of states with tax surpluses
(Image credit: Illustration by Robert Neubecker)

During the height of the pandemic in early 2020, the economic downturn forced states to furlough employees and cut services. Faced with the prospect of a prolonged recession, state officials braced for steep declines in revenue from sales and income taxes.

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Sandra Block
Senior Editor, Kiplinger's Personal Finance

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.