Lately, some state policymakers are exerting their authority to punish businesses in their state that disagree with certain social policies. What happens when these two goals clash with one another? Or when they conflict with the vital job of collecting sufficient tax revenue to operate government and balance a budget?
Just as state governors and legislators are figuring out how to spend their unexpected budget surpluses, global events could wipe out much of those gains.
State policymakers across the country are considering tax cuts in 2022. While there are many reasons and ways to cut taxes, state policymakers should keep in mind that the pandemic’s negative effects were unequal and that future state revenue growth is uncertain. This report, using the Tax Policy Center state tax model, analyzes 2021 tax cuts passed in Arizona, Maryland, New