A longstanding concern of state and local governments is that a federal value-added tax (VAT) could shrink sales tax bases. But a federal VAT could have even bigger effects on other revenues and spending through changes in incomes, relative prices, and asset values. To illustrate the range of...
Many federal tax reform proposals would eliminate the state and local tax (SALT) deduction. Although deficit reduction often is the rationale, there are arguments for eliminating the deduction based on economic efficiency, equity, and improved federal fiscal policy. Eliminating the deduction,...
Changing demographics, technology, and inflation are creating an increasingly difficult environment for state budgets. An aging population puts more pressure on spending programs while reducing tax revenues from some sources. State sales tax revenue systems have not kept up as technology has...
Every year, the Urban Institute produces hundreds of reports, briefings, webcasts, and blog posts. In this publication, Urban’s State and Local Finance Initiative has brought together the latest evidence-based research, data, and solutions with direct relevance for analysts charged with crafting...
This Tax Fact examines minimum wages across states. The current federal minimum wage, which applies to almost all employees, is $7.25 per hour unchanged since 2010. The District of Columbia and 21 states set minimum wages higher than the federal rate.
This year marks the 100th Anniversary of California's initiative process. In 1911, California famously adopted the direct initiative process and ballot box decision-making has become almost as synonymous with the Golden State as beaches, hi-tech innovation, and Hollywood. While 75% of voters in...
Effects of a Federal Value-Added Tax on State and Local Budgets
A longstanding concern of state and local governments is that a federal value-added tax (VAT) could shrink sales tax bases. But a federal VAT could have even bigger effects on other revenues and spending through changes in incomes, relative prices, and asset values. To illustrate the range of...
Revisiting the State and Local Tax Deduction
Many federal tax reform proposals would eliminate the state and local tax (SALT) deduction. Although deficit reduction often is the rationale, there are arguments for eliminating the deduction based on economic efficiency, equity, and improved federal fiscal policy. Eliminating the deduction,...
Governing with Tight Budgets
Changing demographics, technology, and inflation are creating an increasingly difficult environment for state budgets. An aging population puts more pressure on spending programs while reducing tax revenues from some sources. State sales tax revenue systems have not kept up as technology has...
Prepping for the New Session: End-of-Summer Reading for State Budget Analysts
Every year, the Urban Institute produces hundreds of reports, briefings, webcasts, and blog posts. In this publication, Urban’s State and Local Finance Initiative has brought together the latest evidence-based research, data, and solutions with direct relevance for analysts charged with crafting...
A Comparison of State Minimum Wages
This Tax Fact examines minimum wages across states. The current federal minimum wage, which applies to almost all employees, is $7.25 per hour unchanged since 2010. The District of Columbia and 21 states set minimum wages higher than the federal rate.
California's Initiative Turns 100: Initiatives Aren't as Bad as You Think
This year marks the 100th Anniversary of California's initiative process. In 1911, California famously adopted the direct initiative process and ballot box decision-making has become almost as synonymous with the Golden State as beaches, hi-tech innovation, and Hollywood. While 75% of voters in...