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States Expect More Damaging Cuts Without More Federal Aid

September 9, 2020

State policymakers will soon begin addressing shortfalls that have already arisen in their current budgets even as they prepare next year’s budgets, and many states are bracing to make deeper, more damaging cuts than they’ve already imposed if they don’t receive additional federal fiscal aid.

State and local tax revenues have plummeted as people have less income, shop less, and reduce...

Utah State Capitol

Federal Aid Delay Will Mean Damaging State Cuts With Long-Term Impacts

July 30, 2020

States need substantial federal aid — now — to stem the fiscal crisis caused by COVID-19 and the resulting recession. States’ revenues are plummeting and their costs are rising and, as a result, they face budget shortfalls that could total...

Flag and Money

States Look to Expand Opportunity by Taxing More Wealth, High Incomes

February 27, 2020

Responding to extreme wealth concentration, states are considering taxing the assets of the very wealthy — such as stocks, bonds, real estate, boats, and jewelry — more heavily while closing loopholes and ending other special tax benefits that shield many of these...

Yacht docked in front of mansion

Some States Taxing Wealth Better, But More Progress Needed

January 27, 2020

Amid lots of recent talk about the federal government’s need to tax large concentrations of wealth more heavily, state policymakers also should tax wealth better as state budget season begins.

State tax systems have helped drive the nation’s extreme wealth concentration, as wealthy individuals and corporations used their political power to shape state tax policies to their benefit. In...

Mansion

States Expanding Opportunity Through Wealth Taxes

July 9, 2019

States from Hawaii to Connecticut responded to extreme wealth concentration this year by expanding taxes on the assets of the very wealthy — such as stocks, bonds, real estate, boats, and jewelry — while closing loopholes and ending other special tax benefits that shield many of these assets from state and local taxes.

These taxes are important because America’s wealth is concentrated...

Luxurious home with pool, at night

Connecticut Capital Gains Surcharge Would Raise Needed Revenue, Narrow Inequality

May 29, 2019

To their credit, Connecticut lawmakers are considering a proposal to levy a modest 2 percent surcharge on capital gains of the wealthiest taxpayers, which would raise needed revenue, reduce inequality, and help the state’s economy.

Relatively few, mostly white, families hold an overwhelming share of the nation’s wealth, leaving millions of others, including those of color, with less...

Incomes of Wealthiest 1% in Connecticut Far Outpace Remaining 99%

States Look to Expand Opportunity by Boosting Capital Gains Taxes

May 22, 2019

Lawmakers in Connecticut, Minnesota, and Vermont are considering raising taxes on capital gains —profits from selling an asset that has gained value, such as stock, real estate, or artwork — while New Mexico this year scaled back a tax break for capital gains. Historically, wealthy (mainly white) individuals used their political power to shape state tax policies in ways that largely benefit...

Capital Gains Go Overwhelmingly to Wealthy Families

With Federal Funding Unreliable, States Must Invest in School Buildings

May 1, 2019

Summer is often a time to repair and improve school buildings or finish building new ones, but the nation’s K-12 schools — especially in low-income neighborhoods — have been neglected for years. The coming onset of summer provides a timely reminder that states should move more forcefully to help address the need.

State cuts to K-12 education over the past decade have affected more than...

Capital Spending for K-12 Schools Well Below 2008 Levels

By Expanding Wealth Taxes, States Can Expand Opportunity

December 12, 2018

The nation’s wealth is concentrated in the hands of a few (see graphic), and state tax systems have contributed to that concentration as wealthy individuals and corporations used their power to shape state tax policies to benefit themselves. But better state tax policies could help build...

Wealth Heavily Concentrated at the Top

States Can Still Prepare for Next Recession

October 30, 2018

Most states have most or all of the “rainy day” funds — reserves to use when recessions or other unexpected events cause revenue declines or spending increases — needed to weather a moderate recession, but they still face many risks, according to the bond rating agencies...

One-Third of States Unprepared for Moderate Recession

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