Sales Tax Changes: The Impact of State Budgets and Lagging Economic Forces

• Tax leaders should monitor the real economy, which impacts fiscal policies and consumption taxes.
• State and local budgets may deteriorate due to economic factors.
• Tax jurisdictions may need to increase sales tax rates or expand the tax base.
• Economic variables to consider for future tax liabilities include the end of COVID stimulus programs, resumption of student loan repayments, and high inflation.
• Sales tax rate changes are likely to continue increasing.
• Tax leaders should be aware of the potential impacts of current economic forces.

Source: vertexinc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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