Research Roundup: Tax Reforms that Improve Budget Fairness-- And Those That Don't

This tax weeks highlights reforms that improve budget fairness-- and those that don't:

  • Promoting State Budget Accountability Through Tax Expenditure Reporting - For states seeking to get better control of their budgeting process, this indepth report by the Center for Budget and Policy Priorities outlines how tax credits, deductions and exemptions usually bypass annual budget reviews and best practices for tracking them.   By creating an annual tax expenditure report, states can better measure their costs and potential effectiveness, although most of the 42 states with such reports omit critical information such the number of households that benefit from the programs.
  • Georgia Budget Raises Taxes on Middle-Income Families to Pay for Capital Gains Tax Breaks for Wealthiest Investors - The title of this ITEP report says it all; in typical conservative fashion, the budget just approved by the Georgia General Assemlby increases taxes on the poorest 95% of the population for a tax break that overwhelmingly benefits the richest 1% of the population.