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...
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 this brief, we consider both personal and business income tax expenditures at the state level. We use California, Massachusetts, Minnesota, and the District of Columbia as examples. We separate tax expenditures into those that occur because of conformity with federal tax provisions and those...
Tracy Gordon, senior fellow, testified before the US House of Representatives Committee on the Budget for a hearing on “Why Federal Investments Matter: Stability from Congress to State Capitals.” In her testimony she notes that while states and localities are key economic players and service...
State government tax revenues fluctuated wildly throughout state fiscal year 2019, which ended on June 30th in 46 states. The fluctuations were largely related to income tax receipts and caused by the Tax Cuts and Jobs Act.
Overall, state tax revenues showed robust growth in the second...
“Sin taxes” are often viewed as budget saviors, though they play a rather small role in state budgets. Although states raise revenue from sin taxes, policymakers should be mindful of these taxes’ limitations. Absent policy changes (such as increased tax rates), long-term growth for sin tax...
Created by the Tax Cuts and Jobs Act of 2017, the federal government’s latest economic development incentive, Opportunity Zones, is currently in the beginning stages of implementation. While it has the potential to stimulate significant cash flow across the country, its success partially depends...
State government tax revenues rebounded in the first quarter of 2019 after declines in the fourth quarter of 2018. However, year-over-year growth was substantially weaker in the first quarter of 2019 than in the final quarter of 2017 and the first three quarters of 2018. Most of the recent...
If the United States undertakes actions to address the risks of climate change, the use of coal in the power sector will decline rapidly. Twenty-six US counties are classified as “coal-mining dependent,” meaning the coal industry is a major employer. In these areas, the industry is also an...
This policy brief summarizes the implications of a carbon-constrained future on coal-dependent local governments in the United States. It considers the outlook for US coal production over the next decade under such conditions and explores how county finances could be affected. It also considers...
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...
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...
State Income Tax Expenditures
In this brief, we consider both personal and business income tax expenditures at the state level. We use California, Massachusetts, Minnesota, and the District of Columbia as examples. We separate tax expenditures into those that occur because of conformity with federal tax provisions and those...
Strengthening the Federal-State-Local Partnership in Recession and Recovery
Tracy Gordon, senior fellow, testified before the US House of Representatives Committee on the Budget for a hearing on “Why Federal Investments Matter: Stability from Congress to State Capitals.” In her testimony she notes that while states and localities are key economic players and service...
State Tax and Economic Review, 2019 Quarter 2
State government tax revenues fluctuated wildly throughout state fiscal year 2019, which ended on June 30th in 46 states. The fluctuations were largely related to income tax receipts and caused by the Tax Cuts and Jobs Act.
Overall, state tax revenues showed robust growth in the second...
Are States Betting on Sin? The Murky Future of State Taxation
“Sin taxes” are often viewed as budget saviors, though they play a rather small role in state budgets. Although states raise revenue from sin taxes, policymakers should be mindful of these taxes’ limitations. Absent policy changes (such as increased tax rates), long-term growth for sin tax...
An Opportunity Zone Guide for Governors and a Case Study of South Carolina
Created by the Tax Cuts and Jobs Act of 2017, the federal government’s latest economic development incentive, Opportunity Zones, is currently in the beginning stages of implementation. While it has the potential to stimulate significant cash flow across the country, its success partially depends...
State Tax and Economic Review, 2019 Quarter 1
State government tax revenues rebounded in the first quarter of 2019 after declines in the fourth quarter of 2018. However, year-over-year growth was substantially weaker in the first quarter of 2019 than in the final quarter of 2017 and the first three quarters of 2018. Most of the recent...
The Risk of Fiscal Collapse in Coal-Reliant Communities
If the United States undertakes actions to address the risks of climate change, the use of coal in the power sector will decline rapidly. Twenty-six US counties are classified as “coal-mining dependent,” meaning the coal industry is a major employer. In these areas, the industry is also an...
Why Local Governments Should Prepare for the Fiscal Effects of a Dwindling Coal Industry
This policy brief summarizes the implications of a carbon-constrained future on coal-dependent local governments in the United States. It considers the outlook for US coal production over the next decade under such conditions and explores how county finances could be affected. It also considers...