Increasing Volatility in Tax Systems: A Growing Budget Problem for States

Source: Donald J. Boyd and Robert B. Ward, Nelson A. Rockefeller Institute of Government, Observations, March 2011

States will decide in the coming weeks how to spend roughly three-quarters of a trillion dollars from their taxes on personal income, sales and other activities. It’s a big number. That means even relatively small errors in revenue forecasts can make a substantial difference for state and local government budgets, and the services they support.

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