Revenue

Like any business or household, revenues play a critical role for states in determining their levels of spending. Nearly every state is constrained by a balanced budget amendment requiring their general fund expenditures not to exceed revenues (though budget games have allowed them to relax this constraint considerably). When times are tough, many legislators who loathe cutting programs turn to higher taxes as a way to increase revenue. However, as economist Arthur Laffer has shown, higher taxes do not always increase revenue. Minnesota, for example, has been driving high-earners (and their tax dollars) out of the state with its' unfriendly tax climate. Understanding the dynamics of taxation and state revenues is essential for anyone who seeks solutions to state revenue problems; SBS is here to help.

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    • SOLUTIONS: New York

      The Case for a Cap

      The Empire Center | December 7, 2011

      This report analyzes the tax cap proposal in light of previous efforts to limit property taxes in New York and other states. Among the findings, New York's local property tax levels are exceptionally high by national standards and have grown by more than double the inflation rate over the past decade, justifying the governor's push to limit future growth.

    • SOLUTIONS: Georgia

      Eight Affordable Ideas for Georgia

      The Georgia Public Policy Foundation | by Eight Affordable Ideas for Georgia | December 2, 2011

      Georgia should continue to push the reforms that have made this one of the best managed states in the nation, but innovation is the best opportunity for true reform. Tax, regulatory and tort reform will create the right conditions for innovation in the private sector while the state pursues innovation in the areas of criminal justice, education and heath care.

    • SOLUTIONS: North Dakota

      Moving Forward

      The North Dakota Policy Council | November 29, 2011

      A guide to needed reforms in pensions, taxes and higher education, among other areas, with  two types of goals that are important when working towards limiting government: long-term policy objectives that show the end-game goals and short-term policies that steer public policy towards the long-term goals. This guide provides both.

    • SOLUTIONS: Nevada

      One Sound State, Once Again

      The Nevada Policy Research Institute | by Geoffrey Lawrence | November 3, 2011

      Nevada seriously needs genuine, revenue-neutral fiscal reforms, and this report seeks to fill that vacuum. It analyzes the actual volatility of Nevada's current taxes - and the taxes lawmakers keep signaling they want. It covers important tax-related issues, such as achieving economic efficiency and tax equity, while reducing compliance costs as well as tax-induced distortions in economic behavior. It advocates implementing priority-based budgeting.

    • SOLUTIONS: Oregon

      How to Turn Oregon’s Business Climate Around

      The Cascade Policy Institute | by Steve Buckstein | November 3, 2011

      Article presenting the elimination of the Oregon state income tax and the end forced unionism as solutions to both budget problems and lack of business growth.

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