Fair and Adequate State Revenues
While states can do a lot to improve their budgets by stopping wasteful contract spending and tax breaks and by reforming their health care systems, this will not be enough to solve all budget shortfalls. Many state tax systems simply fail to generate adequate revenue to meet the cost of providing current services. Some states’ structural budget deficits will require reforms to create more equitable and productive taxes. The following are examples of useful measures to improve state tax systems, and of harmful anti-tax efforts like TABOR being pushed in some states.
Close Corporate Tax Loopholes
Produce a Corporate Income Tax Report
- California's corporate income tax report (PDF page 169)
- Wisconsin corporate income tax report (PDF pages 11-13)
- Ohio corporate tax payments news story
Require Combined Corporate Reporting
- Combined Corporate Reporting background
- States that have fully or partially closed corporate tax loopholes
Withhold Partnership Income
Modernize the Sales Tax
- Fact sheet on sales taxation of services
- State sales taxation of services by type of service
- State-by-state detail of sales taxation of individual services
- Services added to New Jersey’s sales tax law
- Services added to Ohio's sales tax law
- Services added to Nebraska's sales tax law (page 2)
Make State Taxes More Progressive
- State tax systems have become more unfair
- Tax burdens by income group for every state
- Raising top-rate income taxes – revenue estimates