US States Slash Taxes Most in Decades on Big Budget Surpluses

More than half of US states are using record budget surpluses to fund their biggest collective tax break in decades, risking future revenue shortfalls to help residents combat inflation and make some long-sought cuts.

Almost two dozen states slashed personal or corporate income-tax rates in the past two years and more than a dozen enacted temporary relief in 2022. Democratic governors often opted for tax holidays and one-time rebates, while many Republican leaders cut rates for good, usually for the highest brackets.

Those changes amount to $15 billion in total cuts for fiscal year 2023, according to a survey of ...