In this report, we compare revenue equivalent alternatives to the $10,000 annual limit on the state and local tax (SALT) deduction enacted in the 2017 Tax Cuts and Jobs Act (TCJA). We consider options that would limit all itemized deductions, not just the SALT deduction, and an additional option...
On March 30, the Congressional Budget Office (CBO) released its analysis of President Trump’s proposed budget for fiscal year 2021. The president submitted this budget on February 10, 2020, when the pandemic was in its early stages in the US and before the enactment of major relief bills in...
The global pandemic caused by the novel coronavirus outbreak will dramatically affect state tax revenues over the next months and possibly years. This brief summarizes how state revenue forecasters viewed their state economies before the COVID-19 pandemic, as documented in governors’ proposed...
As the potential economic impact of a global pandemic starts to crystalize, there has rightly been a lot of discussion about how individuals and businesses will fare—and what governments can do to support them. But what will happen to government finances? In particular, what happens to U.S....
In January, the Congressional Budget Office (CBO) released its first economic and budgetary outlook of the decade. Even prior to the recent COVID-19 crisis, along with its attendant impact on the budget, CBO projected a deficit of more than $1 trillion for fiscal year 2020. The federal budget is...
In this brief, we estimate the revenue and distributional effects of Senator Bernie Sanders’s 2020 campaign tax proposals. We show the revenue and distributional implications of tax proposals excluding those related to his Medicare for All plan. We also report the revenue estimates (but not the...
In this brief, we estimate the revenue and distributional effects of former vice president Joe Biden’s 2020 campaign tax proposals, based on information released by the Biden campaign and conversations with campaign staff. We analyze Biden’s proposals as of February 23, 2020...
State and local government tax revenues showed normal growth in the third quarter of 2019 after declines in the fourth quarter of 2018, much weaker growth in the first quarter of 2019, and robust growth in the second quarter of 2019. Most of the volatility in the prior quarters...
In recognition of the important work family caregivers do, the Economic Security Project (ESP) has proposed that they be eligible for the cost-of-living refund, an expansion of the earned income tax credit (EITC). Among other changes to the EITC, the cost-of-living refund would extend benefits...
Congress and the president have put the federal budget on track for unsustainable and rising deficits without end. Mandatory spending programs—those that continue automatically without new appropriations—are expanding at a faster rate than discretionary spending programs, while total spending...
Alternatives to the TCJA Limit on the State and Local Tax Deduction
In this report, we compare revenue equivalent alternatives to the $10,000 annual limit on the state and local tax (SALT) deduction enacted in the 2017 Tax Cuts and Jobs Act (TCJA). We consider options that would limit all itemized deductions, not just the SALT deduction, and an additional option...
The President’s Budget Priorities and the COVID-19 Pandemic
On March 30, the Congressional Budget Office (CBO) released its analysis of President Trump’s proposed budget for fiscal year 2021. The president submitted this budget on February 10, 2020, when the pandemic was in its early stages in the US and before the enactment of major relief bills in...
State Revenue Forecasts Before COVID-19 and Directions Forward
The global pandemic caused by the novel coronavirus outbreak will dramatically affect state tax revenues over the next months and possibly years. This brief summarizes how state revenue forecasters viewed their state economies before the COVID-19 pandemic, as documented in governors’ proposed...
How to Shore Up State and Local Budgets during a Coronavirus Recession
As the potential economic impact of a global pandemic starts to crystalize, there has rightly been a lot of discussion about how individuals and businesses will fare—and what governments can do to support them. But what will happen to government finances? In particular, what happens to U.S....
The Decade of Deficits: The Latest Ominous Projections from the Congressional Budget Office
In January, the Congressional Budget Office (CBO) released its first economic and budgetary outlook of the decade. Even prior to the recent COVID-19 crisis, along with its attendant impact on the budget, CBO projected a deficit of more than $1 trillion for fiscal year 2020. The federal budget is...
An Analysis of Senator Sanders's Tax Proposals
In this brief, we estimate the revenue and distributional effects of Senator Bernie Sanders’s 2020 campaign tax proposals. We show the revenue and distributional implications of tax proposals excluding those related to his Medicare for All plan. We also report the revenue estimates (but not the...
An Analysis of Former Vice President Biden’s Tax Proposals
In this brief, we estimate the revenue and distributional effects of former vice president Joe Biden’s 2020 campaign tax proposals, based on information released by the Biden campaign and conversations with campaign staff. We analyze Biden’s proposals as of February 23, 2020...
State Tax and Economic Review, 2019 Quarter 3
State and local government tax revenues showed normal growth in the third quarter of 2019 after declines in the fourth quarter of 2018, much weaker growth in the first quarter of 2019, and robust growth in the second quarter of 2019. Most of the volatility in the prior quarters...
Extending the Earned Income Tax Credit: How the Economic Security Project’s Cost-of-Living Refund Would Affect Family Caregivers
In recognition of the important work family caregivers do, the Economic Security Project (ESP) has proposed that they be eligible for the cost-of-living refund, an expansion of the earned income tax credit (EITC). Among other changes to the EITC, the cost-of-living refund would extend benefits...
Debt and Politics: Integrating America’s Fiscal Outlook with New Campaign Proposals
Congress and the president have put the federal budget on track for unsustainable and rising deficits without end. Mandatory spending programs—those that continue automatically without new appropriations—are expanding at a faster rate than discretionary spending programs, while total spending...