Oregon has a new distinction. In 2016, broad based personal income taxes represented 69.6 percent of state government revenue, the highest share in the country, up slightly from 69.1 percent in 2015 and up substantially from 37.7 percent in 2010.
Since about 1980, corporate income taxes have become an increasingly smaller share of total state tax revenues and a smaller share of businesss’ costs across the country, according to the Federal Reserve Board of San Francisco.
Broad-based personal income taxes are the greatest source of tax dollars in 28 of the 41 states that impose them, the Pew Charitable Trusts reported today.
In fiscal year 2016, the share of total state tax revenue from personal income taxes grew to its largest percentage in at least 65 years, Pew said. The share from general sales taxes also increased from the previous year, while those from corporate and severance taxes edged down.
Taxes and federal funds together account for more than two-thirds revenue for the 50 states, another Pew study reported. Taxes are the largest revenue source in 46 states, while federal funds are greatest in three.