With their revenues and cash reserves at record highs after unprecedented federal aid to offset the impact of COVID-19, dozens of states embarked on the biggest wave of tax cuts in decades, slashing levies by at least $124 billion on everything from personal income to groceries and gasoline.
In their new report, State Tax Cuts after the Pandemic: Strategies to Sustain Fiscal Health, Can Chen, AYSPS associate professor of Public Management and Policy, and Alex Hathaway, senior research associate at the Center for State and Local Finance, look into the wide array of tax cuts—and the few tax increases—for a series of issue papers on state and local budgeting in the COVID-19 era started by the Volcker Alliance, a nonprofit aiming to empower the public sector workforce to solve the challenges facing the nation.
Find the report here.
