Early on in the pandemic, I wrote a policy brief for the National Taxpayers Union Foundation warning of the danger of tax hikes and otherwise inadvisable tax policies coming out of revenue-starved state houses during a recession. As with most predictions that one hopes will prove unfounded, this one is of course coming true.
Also unsurprising is that it is California leading the bad-policy charge (not that the state has ever needed a recession to pass ill-advised proposals). Members of the state legislature have proposed combating budget pressures by boosting its already-high 13.3 percent top marginal tax rate to 16.8 percent.
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