Texas

Missouri voters are facing a major decision at the ballot box next week on Amendment 5, which would amend the state constitution to allow lawmakers to eliminate the individual income tax and expand the state’s sales tax on any good or service to make up for lost revenue.

Below is a list of tax expenditure reports published in the states.

This week Hawaiʻi lawmakers reached a compromise to balance the state budget and maintain tax cuts for most residents by, in part, raising rates on the richest Hawaiians. Other states are working to generate revenue from their wealthiest residents, too.

Missouri lawmakers passed legislation that will have residents vote on a proposal at the ballot box. The ask: for them to pay more in sales taxes to offset cuts – and the possible elimination – of the state's individual income tax, which makes up nearly two-thirds of Missouri’s general fund.

State legislative sessions are wrapping up, and final tax and budget packages are making their way to governors’ desks.

California Gov. Gavin Newsom went to Texas recently and claimed: “Texas taxes poor folks more than we tax our richest." He’s right.

2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.

As we kick off a new year, several states are facing revenue shortfalls. Some lawmakers are approaching the challenge with sustainable and equitable solutions.