Playing Tax Shell Games

While Washington cuts rates, many states and localities are raising them

Most wage-earning Americans will see increases in their take-home pay after next week, when the second round of the Reagan Administration personal income tax reductions goes into effect. The cut trims the federal withholding bite by another 10% on top of the 5% reduction of last October, pumping an additional $39 billion into the depressed economy. To millions of Americans, though, actual buying power after July 1 may turn out to be only microscopically greater than before.

That is because many states and cities...

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