New Year Brings At Least $210 Million in New Tax Cuts: Phased-In Cuts Contribute to Structural Deficit
At least eight new or expanded state tax cuts and tax credits will go into effect at the beginning of 2011. These tax changes add up to an estimated $210 million cut in state taxes over the 2011-13 biennium. Phased-in tax cuts are easier to enact than cuts that go into full effect immediately, because the revenue impact is not felt until later down the road. But when the full cost is realized, legislators must either reduce spending or find other sources of revenue. Read full publication.