With this week’s tax deadline, we thought we’d give a brief tax update. In short, everything points towards increased taxes.
Templeton Financial Services (Templeton) pointed out in their recent quarterly update that revenue for state and local governments has decreased because of the global pandemic. As a result, several cities are looking at increasing taxes. For example, Seattle is considering increasing taxes for businesses with larger payrolls. Likewise, San Francisco considers increasing taxes for businesses “where the highest paid executive makes more than 100 times the median worker pay.”
Because of the decreased tax revenue, infrastructure suffers. Templeton pointed out that about 74% of U.S. cities already implemented budget cuts according to a recent sampling. With the heavy government spending to pop up the economy, we will see additional budget shortages. All of this will probably lead to higher taxes.
Click here to read the entire report by Templeton.