© 2024 University of Missouri - KBIA
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

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.

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.