Center on Budget and Policy Priorities: Four Steps to Moving State Sales Taxes Into the 21st Century

Antiquated sales taxes are hindering states’ ability to strengthen their economies.  As they emerge from the recession and look to compete in a 21st century economy, many states are recognizing the urgent need to invest in highly competitive education systems, modern transportation networks, and a range of other innovative public initiatives that will form a strong foundation for future economic growth.  But states won’t be able to make these investments and sustain them over time without modern revenue systems that can raise adequate revenue as today’s economy expands.  A key step to doing so is to modernize their sales taxes, which account for nearly a third of the tax revenue states collect.

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