Although the federal and state tax systems are significantly different, both are subject to forces beyond lawmakers' control. Hutchinson, who took office vowing to slash income taxes, has proposed a much more modest cut of $50 million annually for low-income taxpayers. After Indiana Republicans cut income, corporate and property taxes, the state developed a $300 million budget gap. In Democrat-dominated California, where voters approved tax increases and state revenue has soared in recent years, Gov. Now the Republican governor and GOP-controlled Legislature are considering raising taxes on cigarettes, gasoline and some services to help fill an $870 million budget hole.

Source: ABC News January 17, 2017 06:26 UTC