Balanced budget requirements (BBRs) prohibit states from spending more than they collect in revenue. This fact sheet describes how BBRs vary in stringency and design and reviews evidence on whether stricter antideficit provisions produce “tighter” state fiscal outcomes, such as reduced spending...
Although most states produce a budget annually, 20 states produce a budget every other year for the upcoming two fiscal years, or biennially. This fact sheet describes the budget process and reviews the evidence on how annual and biennial budgeting, as well as the line item veto, affect fiscal...
Budget stabilization funds (BSFs), also known as rainy day funds, allow states to set aside surplus revenue for times of unexpected revenue shortfall or budget deficit. This fact sheet describes how BSF rules vary across states and reviews evidence on how they affect savings and volatility.
In our research, we examine two alcohol excise tax increases enacted by Illinois in 1999 and in 2009. Using the synthetic control method, we find no evidence that either tax increase reduces fatal alcohol-related motor vehicle crashes for the whole of Illinois, although we do find evidence of a...
The Tax Policy Center has released distributional estimates of the Senate version of the Tax Cuts and Jobs Act as passed by the Senate Finance Committee on November 16, 2017. We find the bill would reduce taxes on average for all income groups in both 2019 and 2025. In general, higher income...
The Tax Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by the US House of Representatives on November 16, 2017. We find the legislation would boost US economic output by 0.6 percent of gross domestic product (GDP) in 2018, 0.3 percent...
In Part 1 of this exercise, TPC estimated the revenue and distributional effects of proposals that wouldeliminate almost all income tax expenditures to lower individual and corporate tax rates and maintain long-run revenue neutrality for the Federal tax system. The results of Part 1 showed that...
The Tax Policy Center has released new distributional estimates of the Tax Cuts and Jobs Act to reflect the bill as passed by the Committee on Ways and Means of the US House of Representatives on November 9, 2017. The changes from the bill as originally introduced have a relatively minor effect...
NOTE:This is a corrected version of the analysis originally published November 6, 2017.
The Tax Policy Center has produced preliminary distributional estimates of the Tax Cuts and Jobs Act as introduced on November 3, 2017. We find the legislation would reduce...
Current discussions about federal tax reform include a number of proposals that could impact the states. These items may broaden the tax base and increase state revenue, or put pressure on states to cut taxes and reduce revenue, or even create administrative challenges for states. In this...
Balanced Budget Requirements
Balanced budget requirements (BBRs) prohibit states from spending more than they collect in revenue. This fact sheet describes how BBRs vary in stringency and design and reviews evidence on whether stricter antideficit provisions produce “tighter” state fiscal outcomes, such as reduced spending...
The Budget Cycle and Line-Item Veto
Although most states produce a budget annually, 20 states produce a budget every other year for the upcoming two fiscal years, or biennially. This fact sheet describes the budget process and reviews the evidence on how annual and biennial budgeting, as well as the line item veto, affect fiscal...
Budget Stabilization Funds
Budget stabilization funds (BSFs), also known as rainy day funds, allow states to set aside surplus revenue for times of unexpected revenue shortfall or budget deficit. This fact sheet describes how BSF rules vary across states and reviews evidence on how they affect savings and volatility.
State Alcohol Excise Taxes May Have Little Effect on Drunk Driving Fatalities
In our research, we examine two alcohol excise tax increases enacted by Illinois in 1999 and in 2009. Using the synthetic control method, we find no evidence that either tax increase reduces fatal alcohol-related motor vehicle crashes for the whole of Illinois, although we do find evidence of a...
Distributional Analysis of the Tax Cuts and Jobs Act as Passed by the Senate Finance Committee
The Tax Policy Center has released distributional estimates of the Senate version of the Tax Cuts and Jobs Act as passed by the Senate Finance Committee on November 16, 2017. We find the bill would reduce taxes on average for all income groups in both 2019 and 2025. In general, higher income...
Macroeconomic Analysis of the Tax Cuts and Jobs Act as Passed by the House of Representatives
The Tax Policy Center has released an analysis of the macroeconomic effects of the Tax Cuts and Jobs Act as passed by the US House of Representatives on November 16, 2017. We find the legislation would boost US economic output by 0.6 percent of gross domestic product (GDP) in 2018, 0.3 percent...
The Tax Reform Trade-off: Eliminating Tax Expenditures, Reducing Rates (Part 2)
In Part 1 of this exercise, TPC estimated the revenue and distributional effects of proposals that wouldeliminate almost all income tax expenditures to lower individual and corporate tax rates and maintain long-run revenue neutrality for the Federal tax system. The results of Part 1 showed that...
Distributional Analysis of the Tax Cuts and Jobs Act as Passed by the House Ways and Means Committee
The Tax Policy Center has released new distributional estimates of the Tax Cuts and Jobs Act to reflect the bill as passed by the Committee on Ways and Means of the US House of Representatives on November 9, 2017. The changes from the bill as originally introduced have a relatively minor effect...
Preliminary Distributional Analysis of the "Tax Cuts and Jobs Act"
NOTE: This is a corrected version of the analysis originally published November 6, 2017.
The Tax Policy Center has produced preliminary distributional estimates of the Tax Cuts and Jobs Act as introduced on November 3, 2017. We find the legislation would reduce...
How Federal Tax Changes Would Affect the States
Current discussions about federal tax reform include a number of proposals that could impact the states. These items may broaden the tax base and increase state revenue, or put pressure on states to cut taxes and reduce revenue, or even create administrative challenges for states. In this...