State and local tax systems are regressive: they tax low-income households at higher rates than high-income households. This issue has come to light as some states, looking for ways to respond to the collapse in tax revenue following the “Great Recession,” have turned to tax increases targeted at high-income households. Alongside the budget cuts that were adopted by every state, this new tax revenue can help sustain public spending on vital services, including education, public safety, and infrastructure. .
