State Budget Deficits and Shortfalls Continue: Keep Watching!
According to a recent Center on Budget Policies and Priorities article, thirty-one states projected budget gaps totaling $55 billion for fiscal year 2013.
The article states that these shortfalls were more difficult for states to address because they have fewer options than those that were available the past few years.
On the positive side, the article mentions that state finances are recovering, albeit slowly.
"The shortfall totals for fiscal year 2013 are smaller than the totals from the last few years. But they remain large by historical standards, as the economy remains weak and unemployment is still high."
"The shortfalls that states have projected for fiscal year 2013 are in addition to the more than $540 billion in shortfalls that states have closed over the past four years."
Well, this most likely means that we will see states continue to be active on the audit front, as well as continuing the search for the right combination of legislation (i.e., tax increases, incentives, etc.) to spark growth and revenue.
This means that businesses and industries should keep a close eye on the legislative process and get involved when deemed necessary.
For more information, go to the article for all of the details.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.