POLITICO: States Move Cautiously in Contending With Huge Budget Gaps
media mention“This crisis is still in its very early stages,” said Carl Davis of the Institute on Taxation and Economic Policy.
Davis noted that the last recession began in December 2007, about nine months before the global financial system really imploded. And yet, many state tax increases didn’t happen until 2009 or even later as they dealt with the fallout.
“There’s a bit of lag, with state lawmakers often waiting to raise taxes until they’re confronted with having to enact terrible budget cuts,” Davis said.