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1 Nicole Kaeding & Jeremy Korpedahl, Help from Our Friends: What States Can Learn from Tax Reform Experiences across the Country 1 (2018)

handle is hein.taxfoundation/hfwscl0001 and id is 1 raw text is: Help from Our Friends: m What States Can Learn from Tax Reform Experiences across the FISCAL Country FACT Nicole Kaeding Jeremy Horpedahi No. 587 Director of Special Projects Scholar, Arkansas Center for Research in Economics May 2018 Key Findings * State tax reform is a difficult process, but states like Utah, Indiana, and North Carolina, and the District of Columbia, illustrate that reform can be successful when it happens in a diligent and thoughtful way. Other states can learn much from these experiences. * All four of these jurisdictions lowered tax rates, broadened tax bases, and simplified their tax structures, improving their competitiveness. * Tax reform does not need to be a one-year effort. Indiana, for instance, instituted its reforms over a five-year time frame. * The use of tax triggers helped North Carolina and the District of Columbia ensure that they had sufficient revenues to pay for government services. * Kansas, however, illustrates an unsuccessful example of tax reform. Dramatically cutting a state's revenue source, without offsetting spending or tax changes, puts the state's fiscal health in jeopardy. These problems were exacerbated by Kansas's special pass-through exemption, which narrowed the state's tax base. The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) nonprofit organization. @2018 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation A version of this article will appear in the forthcoming book The Citizen's Guide to 1325 G Street, NW, Suite 950 Understanding Arkansas Economic Data from the Arkansas Center for Research in Washington, DC 20005 Economics. 202.464.6200 taxfoundation.org