If you flip on the news or thumb through a newspaper these days, it's no secret that the federal government is facing a mounting deficit. Spending has outstripped revenues for years now, and the current recession has cut deeply into the biggest source of income: taxpayers.
What hasn't been touted as much is how the same financial crisis is affecting states. As the federal government cuts back on funding state projects (although many, such as those related to education and homeland security, are mandated by the feds), states are scrambling to make up the difference.
Unfortunately, like the federal government, states are facing a similar dilemma. WalletPop's writer Kelly Phillips Erb figures out why states are strapped for cash, and how increasing sales tax is one method to balance their budget. However, Kelly also uncovers how many states are sneaking in additional taxes that eventually add up to a large sum of revenue. But, what about the consumer?
Read this article in full at Walletpop.com