Economics and Finance

By Brian Sigritz and Kathryn Vesey White
In December, the National Association of State Budget Officers, or NASBO, released the latest edition of its semiannual Fiscal Survey of States. According to data collected from state budget offices, fiscal 2017 is expected to mark the seventh consecutive annual increase in both general fund spending and revenue.

By Katherine Barrett and Richard Greene
With newspapers and scholarly reports full of discussion about states and their shortages—or surpluses—of tax revenues, it would be easy to focus exclusively on the dollars brought in through sales taxes, income taxes and so on. That kind of analysis misses out on the revenue elephant in the room, though: the money that comes from the federal government.

CSG Midwest
At least 20 states, including five in the Midwest (see map), have enacted taxes on the “streaming” of media, such as music, movies or TV shows.
CSG Midwest
As some leading lawmakers in Washington, D.C., explore potential changes to the federal tax code, one idea in particular — the creation of a border adjustment tax — is likely to get more and more attention from many Midwest-based firms.
CSG Midwest
Since its inception in the 1970s, the federal Earned Income Tax Credit (EITC) has enjoyed wide bipartisan support. Designed to encourage and reward work, a low-wage worker’s EITC grows with each additional dollar of earnings until his or her wages reach a maximum value — an incentive for people to leave welfare for work and for low-wage employees to increase their work hours.
And the EITC is refundable: If the amount of the credit exceeds what the worker owes, he or she gets a refund.
“For conservatives, the EITC is pro-work, it is pro-personal responsibility. Liberals like that too, but also it is directed toward low-income people, so you get that mix,” says Chuck Marr, director of federal tax policy for the Center on Budget and Policy Priorities. “Plus, it works. There is very rigorous research to show that it encourages more work.”
According to the IRS, the 42-year-old Earned Income Tax Credit is one of the nation’s largest anti-poverty programs. In tax year 2015, for example:
  • More than 27 million filers received about $67 billion in earned income tax credits. 
  • Four of five people eligible for the EITC claimed it.
  • The EITC and the separate Child Tax Credit lifted an estimated 9.4 million people out of poverty, including 5 million children. 
In the 11-state Midwest, more than 4.6 million federal EITC claims for tax year 2015 provided almost $11.2 billion in credits. The average refund was $2,343. (The maximum federal credit in 2016 ranged from $506 for a childless individual to $6,269 for a family with three or more children.)

Public pension reform is at the forefront of many state policymakers' agendas for 2017. Participants in this webinar will hear a summary of legal issues around public employee pension reform in layman's terms with a focus on constitutional concerns. We will cover which reform provisions have been shot down by the courts, which provisions have held up to challenges and any lessons a state leader can take away from the totality of those rulings.

President Trump has proposed several options for tax reform, including significant changes to personal income taxes. According to recent analysis by the...

States play a key role in attracting businesses, including foreign, to invest and grow in their respective states. The United States remained the top destination for foreign investment, attracting more than $3.1 trillion in 2015, which helped support more than 6 million jobs. This FREE CSG eCademy webinar will highlight innovative programs, resources and tools for states to attract investment to their local economy.

The Trump administration announced a preliminary 2018 budget proposal that included elimination of the Senior Community Service Employment Program (SCSEP). Funds from this program are allocated to states and national grantees in states to employ low-income senior citizens. SCSEP funds 43,600 positions nationwide at a cost of $9,698 per position.

The North Carolina Senate unanimously passed SB-8 on March 15th which eases occupational licensure burdens on veterans by allowing military members and their spouses to practice their profession with a license from another state while transitioning to the requirements of North Carolina. The bill, sponsored by Senators Andy Wells, Harry Brown, and Louis Pate, is a positive step towards helping military families working jobs that may require a license.

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