Managing Fiscal Volatility by Redefining "Tax Cuts" and "Tax Hikes"
Document Type
Article
Publication Date
2010
Abstract
This report analyzes how states should cope with fiscal volatility at the level of institutional-design policy. We propose that states reconsider how they define terms like ‘‘tax cuts’’ and ‘‘tax hikes.’’ By adopting a new baseline for defining those terms, states can increase the likelihood of using tax rate adjustments to cope with fiscal volatility rather than more harmful spending fluctuations.
Recommended Citation
David Gamage and Jeremy Bearer-Friend,
Managing Fiscal Volatility by Redefining "Tax Cuts" and "Tax Hikes", 58 State Tax Notes 1
(2010).
Available at: https://scholarship.law.missouri.edu/facpubs/1145