We retired Tax Justice Blog in April 2017. For new content on issues related to tax justice, go to www.justtaxesblog.org
As the nation’s governors gather in Williamsburg, Virginia this week, their focus is on their Chairman’s initiative, Growing State Economies. Too often, however, a governor’s knee-jerk response to a lagging economy is to start cutting taxes, even though state tax cuts offer very little economic bang-for-the-buck. But while tax cuts aren’t the economic panacea that is often claimed, there are ways in which governors can reform their states’ tax codes to pave the way for improved economic success.
A new report from the Institute on Taxation and Economic Policy (ITEP) identifies governors who get it right and governors who get it wrong, and outlines four commonsense options designed to create infrastructure jobs, boost consumer demand, improve business efficiency, and offer local retailers a more level playing field.