Many people equate a strong state “business climate” with lower taxes. So it’s especially noteworthy that a major business group in Massachusetts has come out against a ballot measure to lower the state’s sales tax.
BEYOND THE NUMBERS
Data on state tax revenues that the Census Bureau released this morning remind us how devastating the recession has been for states’ ability to fund public services — and how important it is that states are closing their shortfalls in part through new revenues, as my colleague Jon Shure noted Friday.
We hear a lot these days about public resentment of government. But a new Idaho poll gives further evidence that, when confronted by the real impact of the record revenue losses that states and localities have suffered due to the recession, Americans favor a balanced approach that includes new revenues instead of just fewer public services.
A number of 2010 gubernatorial candidates propose to reduce or eliminate their state’s corporate income tax, saying this will stimulate growth and create jobs. But, while states are understandably eager to get their economies moving again, corporate tax cuts will not likely work. Among the most important reasons why:
Below are the answers to today’s quiz on the impact of government programs in boosting the economy and reducing hardship during the recession. Send an email to email@example.com today with your final score for the challenge and we’ll send you one of our newly-designed Center on Budget T-shirts.
Nebraska Governor Dave Heineman’s call for education leaders to support health reform’s repeal on the grounds that the state would have to finance it through big cuts in education is based on a gross overestimate of the law’s likely impact on the state.
Today we sat down with Senior Fellow, Liz McNichol, to discuss why some states have ended their fiscal year with budgets in the black even as the state budget crisis continues.
Today’s Wall Street Journal editorial (“Virginia Is for Surpluses”) trumpets Virginia’s $400 million surplus for fiscal year 2010 and praises Governor McDonnell for closing the state’s large budget shortfall without raising revenues. But both parts of this argument have serious flaws.
A new Congressional Budget Office analysis finds that the 2009 Recovery Act is
continuing to save jobs and protect the economy from what would have been a much deeper recession. As of June, the Recovery Act had: