The coronavirus pandemic is not only stripping billions out of state economies but also exposing weaknesses in how many states have structured their tax and revenue systems.
Short-term, states will have to plug financial holes to balance their budgets. But the public health crisis is also an opportunity for states to restructure their revenue programs to minimize downside risks and nurture a revenue recovery when normal economic activity resumes.
Some states may act quickly, aware that major policy shifts become more feasible during economic upheaval.
“There is nothing like a crisis to get states thinking about their tax structures and ...