Can States Close Budget Deficits with Excise Tax Hikes?

Key Findings: The coronavirus pandemic affects almost every source of state revenue, and with the duration unknown, predicting economic outcomes will be difficult. Social distancing, stay-at-home-orders, and quarantines make the resulting recession fundamentally unique. Hospitality, leisure, and travel could be among the hardest hit industries. As a result, excise taxes and fees on air travel…

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How Well-Funded Are Pension Plans in Your State?

The most recent data from The Pew Charitable Trusts, released in July of 2019, shows the strain on state retirement systems nationwide as state pension funds strive to keep pace with benefits owed to public employees. While we highlighted this information soon after it was first released, it is worth revisiting in light of the coronavirus-related funding…

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New OECD Study: Consumption Tax Revenues during Economic Downturns

The current economic shutdown—potentially followed by an economic downturn—affects government budgets not only through increased spending but also through a decline in tax revenues. The severity of these tax revenue shortfalls will depend on a variety of factors—one being a country’s current tax structure. A new OECD study sheds light on how many OECD countries’…

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