Tax Policy Center

state budgets

: TaxVox

State Forecasts: Revenues Have Stabilized but Long-Term Questions Remain

High inflation appears to be giving way to an economic “ soft landing ,” alleviating concerns state forecasters had heading into the current fiscal year...
February 27, 2024Lucy Dadayan
State and Local Issues: TaxVox

State Rainy Day Fund Balances Reached All-Time Highs Last Year

As states navigate an uncertain fiscal future , a lot of budget commentators will justifiably note that nearly every state cut taxes during the last few revenue boom years. But most states also stocked a lot of money into their savings accounts over the past three years – and this may help them weather forthcoming budget storms.
September 6, 2023Aravind Boddupalli
: Daily Deduction

IRS Going Paperless, Canada Going Digital

The IRS is launching a Paperless Processing Initiative to save time for taxpayers and revenue officials. After all the news stories about the IRS struggling...
August 7, 2023John Buhl
State and Local Issues: TaxVox

Navigating Fiscal Uncertainty: Weak State Revenue Forecasts for Fiscal Year 2024

With more fiscal data coming in, the long-term health of state budgets looks murky. After a run up in 2022 , preliminary data show a...
August 4, 2023Lucy Dadayan
State and Local Issues: TaxVox

Three State Tax Cut Lessons for 2023

The past two years were a great time to make state tax policy. Booming revenue collections combined with hundreds of billions of dollars from Congress...
February 2, 2023Richard C. Auxier
State and Local Issues: TaxVox

Are State Tax Cuts a Sign of Federal Aid Excess or Success?

In March 2020, Arizona Gov. Doug Ducey signed a $11.8 billion budget that was $500 million lower than what he had proposed just weeks earlier—before...
July 16, 2021Richard C. Auxier
: TaxVox

Treasury Will Allow States to Take ARP Funds and Cut Taxes, With Some Guardrails

On Monday, the U.S. Treasury Department released much-anticipated guidance for the American Recovery Plan ’s (ARP) $350 billion in direct state and local aid ,...
May 13, 2021Richard C. Auxier
State and Local Issues: TaxVox

Why States and Localities Need More Federal Aid

Opponents of additional federal aid to state and local governments have noted that overall state revenue declines have not been as bad as expected during...
February 22, 2021Lucy DadayanKim S. Rueben
State and Local Issues: TaxVox

Improving State Tax Collections Don’t Let Congress Off the Hook on COVID-19 Relief

As the lame duck Congress considers further stimulus for an economy that is rebounding but still deeply troubled , Senate Majority Leader Mitch McConnell (R-KY)...
November 19, 2020Tracy Gordon
State and Local Issues: TaxVox

McConnell’s Attempt To Blame States For COVID-19 Budget Shortfalls Is Wrong And Dangerous

Senate Majority Leader Mitch McConnell (R-KY) recently said he is “in favor of allowing states to use the bankruptcy route,” instead of Congress providing them...
April 24, 2020Richard C. Auxier