Managing Fiscal Volatility by Redefining "Tax Cuts" and "Tax Hikes"

Authors

David Gamage, Indiana University Maurer School of LawFollow
Jeremy Bearer-Friend

Document Type

Article

Publication Date

2010

Publication Citation

58 State Tax Notes 1 (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

Gamage, David and Bearer-Friend, Jeremy, "Managing Fiscal Volatility by Redefining "Tax Cuts" and "Tax Hikes"" (2010). Articles by Maurer Faculty. 2427.
https://www.repository.law.indiana.edu/facpub/2427