• Research Report

    Sales-Tax Hike Not Needed: There Are Better Ways to Help Struggling Localities

    posted June 12, 2001 by Eric Root, John Hood
    Some state lawmakers are discussing a plan to give local governments the authority to raise their sales taxes by up to 1 penny while simultaneously eliminating state tax reimbursements. While it is true that many counties are raising property taxes this year, most have not been starved for revenue during the 1990s. More importantly, the state can give the same assistance to localities without raising taxes by increasing flexibility and assuming more responsibility for Medicaid.