Join 250,000+
professionals today
Add Insights to your inbox - get the latest
professional news for free.
States Cut Taxes at the Top and Collect More at Checkout
Join our 250K+ subscribers
Join our 250K+ subscribers
Subscribe27 JUL 2026 / ACCOUNTING & TAXES
CPE Approved-1785164594.webp)
Since 1990, US states have consistently cut top personal and corporate income tax rates while increasing sales tax rates. According to data from the Institute on Taxation and Economic Policy, this trend has led to a noticeable shift in who is bearing the financial burden, with lower-income households spending more of their income on taxable goods than higher-income households. This matters as it illustrates the changing nature of tax policy, where states, in a bid to attract businesses and investment, lower income taxes but make life more expensive for average consumers through sales tax hikes.
A state can announce an income tax cut with a ribbon, a podium, and a neat percentage. A sales tax increase arrives differently. It slips into the receipt for school supplies, a replacement appliance, or the Friday takeout order nobody felt like cooking....
Until next time…
Don’t forget to share this story on LinkedIn, X and Facebook
Subscribe now for $199 and get unlimited access to MYCPE ONE, from CPE credits to insights Magazine
📢MYCPE ONE Insights has a newsletter on LinkedIn as well! If you want the sharpest analysis of all accounting and finance news without the jargon, Insights is the place to be! Click Here to Join
You’ve reached the 3 free-content piece limit. Unlock unlimited access to all News & CPE resources.
Subscribe Today.
Already have an account?
Sign In
-1787673827.webp)
