A majority of U.S. chief financial officers expect states to raise corporate income taxes in the coming year, including 88 percent in Illinois and 85 percent in California, according to a survey.
Fifty-seven percent of the CFOs in the survey of 318 executives conducted March 22 to April 6 by Chicago-based Grant Thornton anticipated higher state corporate income taxes.
“Many states, notably New York, Illinois and California, are facing significant budget shortfalls and long-term structural deficits, largely related to health care costs and employee retirement benefits,” Brian Murphy, a Grant Thornton managing partner, said in an e-mailed statement. “In addition to cutting costs, raising taxes and fees on business will continue to be on the agenda for many states.”
