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.

  • Breaking News
  • Research
  • Solutions
  • Commentary
    • HEADLINES: Minnesota, Colorado, California, Maryland, Ohio, Nebraska, Louisiana, Massachusetts

      States' Rift on Taxes Widens

      The Wall Street Journal | by Mark Peters | May 24, 2013

      Minnesota's move to raise $2.1 billion in new taxes, largely from the wealthy, to fund government programs puts it among a handful of states controlled by Democrats that are adopting more liberal fiscal policies at a time when many Republican-dominated statehouses are pushing to cut taxes.

    • HEADLINES: Ohio

      Senate Democrats want more money for schools in state budget

      The Columbus Dispatch | by Jim Siegel | May 23, 2013

      Senate Democrats want to direct $508 million more to Ohio schools over the next two years by eliminating part of a GOP-proposed tax cut for upper-income Ohioans.

    • HEADLINES: North Carolina

      Senate Republicans moving NC budget to House

      News & Observer | by Gary D. Robertson | May 23, 2013

      Republicans turned back several Democratic amendments, some of which were designed to criticize a yet-detailed GOP plan to reduce taxes by more than $750 million over two years.

    • HEADLINES: Massachusetts

      Mass. Senate to begin debating state budget plan

      Boston.com | May 22, 2013

      The Senate plan and a budget passed by the House last month both include $500 million in new revenue, including hikes in gasoline and cigarette taxes.

    • HEADLINES: Louisiana

      State budget, school funding are top issues

      The Monroe News Star | by Mike Hasten | May 20, 2013

      Members of the Senate Finance Committee Thursday immediately started poking holes in a $25 billion state spending plan the House of Representatives approved last week.

    • HEADLINES: Massachusetts

      Mass. senators unveil $34B state budget proposal

      Boston.com | by Steve LeBlanc | May 16, 2013

      The Senate Ways and Means Committee released a nearly $34 billion state budget proposal, a spending plan significantly less than the plan Gov. Deval Patrick unveiled earlier this year.

    • HEADLINES: Louisiana

      Louisiana has surplus envy now that other state budgets are doing better

      NOLA.com | by John Maginnis | May 15, 2013

      After a round of painful mid-year budget cuts, the state finished fiscal year 2012 with a $133 million surplus, proportionate to Florida's. But the Jindal administration needs to use most of that to move money around to get fiscal year 2013 out of the red

    • HEADLINES: California

      Democrats At Odds Over Handling State Budget Surplus

      CBS Sacramento | May 14, 2013

      The Democratic governor, who has pledged to maintain fiscal restraint and build a cash reserve, faces pent-up pressure from members of his own party. Democratic lawmakers want to spend the additional revenue to make up for years of budget cuts to programs serving women, children and the poor.

       

    • HEADLINES: Kentucky

      State revenue dips in April, raising possibility of budget shortfall

      The Lexington Herald Leader | by Beth Musgrave | May 13, 2013

      Kentucky's two-year budget calls for revenue growth of 2.4 percent this fiscal year, but meeting that target would require 3.6 percent revenue growth in May and June.

    • HEADLINES: Minnesota

      Minnesota budget deal: Tax hikes on high earners, tobacco

      The Minneapolis Star Tribune | by Baird Helgeson and Jennifer Brooks | May 13, 2013

      New revenue would boost school spending and fund a property tax relief plan. GOP responded with scorn.


    • 1  2  3  4  5  6  7  8  9  10   Next

    • RESEARCH

      Federal Aid to the States 2008-2011

      by Kristen De Pena | February 21, 2013

      It is well understood that the federal government must make spending cuts-these cuts will most likely drastically change the amount of federal dollars that are allocated to the states. Unfortunately for most states, dependence on federal funding has continually risen since 2008.

    • RESEARCH

      Fiscal Policy Report Card on America's Governors: 2012

      The CATO Institute | by Chris Edwards | October 9, 2012

      This fiscal report card on the governors examines state budget actions since 2010 using statistical data to grade the governors on their taxing and spending records-governors who have cut taxes and spending the most receive the highest grades, while those who have increased taxes and spending the most receive the lowest grades.

    • RESEARCH

      2013 State Business Tax Climate Index

      The Tax Foundation | by Scott Drenkard Joseph Henchman | October 9, 2012

      The Tax Foundation's 2013 edition of the State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states' tax systems compare. The absence of a major tax is a dominant factor in vaulting many of these ten states to the top of the rankings.

    • RESEARCH

      State Budget Crisis Task Force Report

      State Budget Crisis Task Force | by Richard Ravitch and Paul Volcker | July 17, 2012

      State finances are not transparent and often include hidden liabilities as well as rapidly growing responsibilities which are difficult to control.  While state revenues are gradually recovering from the drastic decline of the Great Recession, they are not growing sufficiently to keep pace with the spending required by Medicaid costs, pensions, and other responsibilities and obligations.  This has resulted in persistent and growing structural deficits in many states which threaten their fiscal sustainability.

    • RESEARCH

      Spring 2012 Fiscal Survey of States

      States will face particularly intense budgetary challenges in education and health care in fiscal 2013, putting pressure on all budget areas - including corrections and infrastructure. As budgets face strain from slow revenue growth and expenditure pressures, states will likely confront tough budgetary choices in the next fiscal year.

    • RESEARCH

      Rich States, Poor States

      ALEC American Legislative Exchange Council | by Arthur B. Laffer, Stephen Moore and Jonathan Williams | April 12, 2012

      This fifth edition of Rich States, Poor States provides 50 unique snapshots from our "laboratories of democracy" for you to evaluate. Study the rankings, read the evidence, and learn about the proven principles that lead to economic growth, job creation, and a higher standard of living for all Americans.

    • SOLUTIONS

      How Reality-Based Budgeting Can Permanently Resolve State Budget Gaps

      State Budget Solutions | by Bob Williams | November 7, 2012

      State Budget Solutions recommends that state legislators take action in 2013 to resolve the serious state financial crises by changing their focus from inputs to outcomes by redesigning budgets from the ground up based on priorities and performance.

    • 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.

    • SOLUTIONS: Nebraska

      Pro-Growth Strategy for Nebraska

      The Platte Institute | by Eric Thompson | September 1, 2011

      This report focuses on limiting the regulatory burden in the state and other types of recommendations to improve growth.

    • SOLUTIONS: Illinois, California, Texas

      Amazonian-Size Taxes

      by Kristen De Pena | July 11, 2011

      Proposals to tax Internet retail sales are all the rage as states continue to look for more ways to balance their budgets in the face of revenue shortfalls.

    • SOLUTIONS

      Rich States, Poor States 2011

      Bloated state spending levels and trillions of dollars in unfunded government employee pension liabilities pose huge financial obstacles to economic recovery in the 50 states today. This begs the million-or trillion-dollar question: Why are some states prospering while others are still struggling?

       

       

       

       

    • SOLUTIONS: Texas

      Texas’ Fiscal Future

      The Texas Public Policy Foundation | by Arthur B. Laffer | April 1, 2011

      There has been an impression created in the press and embraced by many that the LBB report suggests that adoption of the bill CSHB1 by Texas would cost Texas 272,000 jobs in 2012 and 335,000 jobs in 2013. This answer, at least as interpreted by the press, is wrong and not based on sound economics. The passage of CSHB1 will not cause less jobs in Texas relative to any other option at hand.