Managing Fiscal Volatility by Redefining ‘Tax Cuts’ and ‘Tax Hikes’

12 Pages Posted: 12 Oct 2010

See all articles by David Gamage

David Gamage

University of Missouri School of Law

Jeremy Bearer-Friend

George Washington University Law School

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.

Keywords: Fiscal Volatility

Suggested Citation

Gamage, David and Bearer-Friend, Jeremy, Managing Fiscal Volatility by Redefining ‘Tax Cuts’ and ‘Tax Hikes’. State Tax Notes, Vol. 58, No. 2, 2010, UC Berkeley Public Law Research Paper No. 1690614, Available at SSRN: https://ssrn.com/abstract=1690614

David Gamage (Contact Author)

University of Missouri School of Law ( email )

Missouri Avenue & Conley Avenue
Columbia, MO MO 65211
United States

HOME PAGE: http://law.missouri.edu/person/david-gamage/

Jeremy Bearer-Friend

George Washington University Law School ( email )

2000 H Street, N.W.
Washington, DC 20052
United States

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