Why states’ increasing reliance on sales taxes is risky

sales taxBy Liz Farmer | Governing

Recessions are scary for governments. But what can be scarier, as far as some fiscal policy analysts are concerned, is what governments do when the revenues start coming back.

In the case of the most recent recession, tax reform has been a hot topic in legislatures — but that has the Urban Institute’s Kim Rueben worried. She supports simplifying the tax code, but too often, she said at a recent event hosted by the institute, “tax reform is also used as a synonym for tax cuts. And that’s a problem.”

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