Heartland Research & Commentary

Lawmakers in at least eight states are considering raising income tax rates on a small percentage of top income-earners in order to shore up their state budgets.

Tough decisions are a part of governing, and Illinois’ $11.5 billion budget shortfall will undoubtedly force many of them.

More than 20 states are considering “sin taxes”—such as excise taxes on tobacco, beer, and spirits—in order to shore up their budget deficits.

A 62-cent increase in the federal excise tax on tobacco products, intended to fund the expansion of the State Children’s Health Insurance Program (SCHIP), goes into effect April 1.