Everyone is talking about “affordability,” and it’s certainly true some families will have to put fewer presents under the tree this Christmas.

But one factor that raises prices is the state sales taxes.  Forty five states impose sales taxes as do many cities. The average state sales tax is 7.52%, the highest it’s ever been.

California’s tax rate is 8.98%, and many counties and cities pile on local taxes that push the rate to some 10%.  Illinois has a tax rate of 8.92%. New York State is at 8.5%, and New York City adds a 0.375% tax on top of that.

If every state were to cut spending, they could cut their sales tax by 1% and affordability would rise.