November 2, 2009
Tax Analysts Highlights Remarks of Tax Foundation Tax Counsel and Director of State Projects Joseph Henchman
"No Easy Fix for State Fiscal Crisis, Panelists Say"
By Nicola M. White
States face a fiscal mess worse than anything seen since the 1930s and there are no easy ways to fix it, experts said at a Tax Analysts-sponsored roundtable discussion in Washington October 30. ...
Joseph Henchman, tax counsel and director of state projects for the Tax Foundation, is not a fan of these income tax increases, arguing that they're vulnerable revenue sources in tough economic times.
"These tend to soar very highly in boom times and plummet in bust times," Henchman said.
Henchman also noted that despite states' budget woes, they continue to compete with each other in the hopes of landing projects to create jobs. They dole out large tax incentives to attract businesses to their states - often with hefty price tags attached.
"If your state tax code and economy is so bad you have to basically bribe people to come to your state, that's a sign you have to change your tax code," Henchman said.
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