August 13, 2010

ITEP’s Testimony on TRAC Sales and Use Tax Proposal


My testimony today offers several broad thoughts on the implications of the proposals for sales and use tax reform laid out so far by the Tax Realignment Commission (TRAC). The testimony stresses that while base-broadening is of paramount importance in achieving a more sustainable state sales tax, policymakers should be aware of the need for lowincome refundable tax credits to mitigate the impact of such reforms on low-income families—and should carefully examine the state’s long-term structural deficit before making a decision that the entire revenue gain from these important changes should be devoted to reducing the state sales tax rate on currently taxable items.

Read the Full Report (PDF)