Cash-Strapped States Raise Taxes as Revenue Declines

Ariz., Fla., Ill., Mich., and NJ among others facing crises

(NEWSER) - California has by no means cornered the market on enormous financial problems at the state level, with a report out today saying Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island, and Wisconsin are also at tremendous risk. The Pew Center sees widespread unemployment, huge budget deficits, and the ongoing foreclosure crisis as common factors—plus various constraints that keep many of the states from raising taxes. More»

(NEWSER) - It’s not easy being an elected official in a time of crisis, but a select few governors are having a particularly tough time. And some of them are even trying to get reelected. Politico looks at the 5 worst-off states:

• California: No surprise here. The state's issuing of IOUs is just the one item on "a list of maladies longer than its famed coastline." At least Arnold Schwarzenegger can't run for another term.

Many are asking people to fess up when they fill out their IRS forms

(NEWSER) - As tax time draws near, more Americans may be stumbling upon an extra line on their state returns, Forbes reports. About half of state governments—including New York, Michigan, California, North Carolina, and Ohio—are trying to collect their fare share of sales taxes from Internet sales. Chances remain slim, though, that most buyers will admit—or pay—anything. More»

State senate, local retailers hostile to offer

(NEWSER) - Amazon has got a tempting offer for California, which is battling the nation’s second-highest unemployment rate: If the state delays a new online sales tax for two years, the Internet retailer will bring 7,000 new jobs to the Golden State. Amazon would also halt its push for a voter referendum on the issue. But Dems controlling the state legislature don’t plan to accept the proposal, Reuters reports. More»

Quite a bit—but it likely won't happen

(NEWSER) - Warren Buffett made waves yesterday when he told the federal government to stop "coddling" him and other wealthy Americans and raise taxes on the rich. His plan would roll back the Bush tax cuts on people who earn more than $1 million and on capital gains and dividends income, and would close the loophole that allows a lower tax rate for hedge fund managers. But how much would it actually help? Quite a bit, writes David Kocieniewski in the New York Times : "The tax increase on all three fronts would generate as much as $500 billion in new revenue over the next decade." More»