Tax Burden Shift: Individuals Pay More The 1990s marked a major shift in state tax collections, according to the Urban Institute’s “Assessing the New Federalism” program. Because of a strong economy, gross revenues from individual income tax increased 46%. But over the same period, corporate taxes actually declined slightly. In addition, by 1998, state personal income tax revenues exceeded general sales tax revenues for the first time since the widespread adoption of state general sales taxes in the late 1930s. Tax Revenues, FY 1988 through FY 1999 Year General Sales Tax Individual Income Tax Corporate Income Tax 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 410 421 424 421 425 438 455 469 479 490 507 514 377 401 409 406 413 428 434 445 463 482 524 550 $102 108 93 83 85 92 94 103 101 102 101 101 % change 88-99 26% 46% -1% Source: Urban Institute