Finding the Right Mix: Tax Mix Trade-offs Across States

Dennis Heffley (), MaryJane Lenon and Raymond Salani ()

The Connecticut Economy, 2009, issue Fall

Abstract: Connecticut may finally have a budget by the time this issue goes to press, but we’re not holding our breath. Governor Rell and the legislature are locked in a debate about whether to cut programs or raise taxes. but even a prolonged budget crisis may have an upside if it forces officials to scrutinize spending and taxes and perhaps improve the mix of both. Unfortunately, spending cuts often incur the wrath of special interests, and our analysis here suggests that policymakers may not have much wiggle room to close the budget gap by tinkering with the tax mix.

JEL-codes: J64 (search for similar items in EconPapers)
Date: 2009
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