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Tax-cut promises meet reality

Nationwide, state revenue growth in the years first three months rose less than 1 percent from a year earlier, forcing reconsideration -- or abandonment -- of pledges of tax relief.

By Tim Jones, William Selway | Updated on May 06, 2014
Missouri Democratic Gov. Jay Nixon rejected legislation that would cut income taxes, though lawmakers overturned his veto. (AP Photo/Jeff Roberson)

May 6 (Bloomberg) — Bold talk of cutting state income taxes is becoming muted as U.S. governors and legislatures face the reality that they can’t afford to keep their promises, even in an improving economy.

New Jersey Republican Chris Christie’s ambitions to reduce what individuals pay have been sidelined by his administration’s overly optimistic budget projections. Connecticut Democrat Dannel Malloy shelved a rebate plan April 28. And lawmakers in Missouri today overturned a tax cut veto by Democratic Governor Jay Nixon, allowing the reduction to go into effect only after annual revenue growth reaches a certain level, starting in 2017.

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