State Options to Shore up Revenues and Improve Tax Codes amid Pandemic
Type
Policy Brief or Report
Year
2020
Level
State
State(s)
All States
Policy Areas
Economic Justice
The devastating effect of COVID-19 on state and local budgets is exposing state and local tax structures as inadequate, inequitable, and outdated. In response, states should focus first on generating needed revenue through tax increases on households, businesses, and sectors of the economy that continue to have high incomes, profits, and activity even during these troubled times. For states facing catastrophic revenue declines, asking more of taxpayers with a clear ability to pay is far preferable to cutting state budgets, which would lead to mass layoffs, steep cuts in public services, and a downward spiral in the economy.