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States tapping historic surpluses for tax cuts and rebates

JEFFERSON CITY, Mo. — State governments flush with money are returning billions of dollars to their residents.

Already this year, at least 31 states have enacted some form of tax cut or rebate. That's likely to grow when Missouri and Idaho convene special sessions in September to consider tax breaks.

The number of states enacting tax breaks is far beyond usual. States have extra money because of surging tax revenue and federal pandemic aid. But there are divisions about how far to go. Democratic states generally have tended toward targeted tax breaks and one-time rebates while some Republican states have enacted permanent income tax rate reductions.

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