From Mercatus Center at George Mason University <[email protected]>
Subject Mercatus Research Roundup, June 27
Date July 11, 2020 2:07 PM
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RESEARCH ROUNDUP

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July 11, 2020



New Mercatus Research

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Which Taxes Pay for Which State and Local Employees?

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Stan Veuger and Daniel Shoag

Tax revenue shortfalls caused by the economic effects of the COVID-19 pandemic are creating major challenges for state and local governments, which often face balanced budget requirements and, in some cases, limitations on what kinds of taxes they are allowed to impose. By calculating where revenue comes from and which share of full-time equivalent workers in that state is employed by each different unit of government, Stan Veuger and Daniel Shoag illustrate in their new policy brief how insufficient budgets will affect public-sector employees such as healthcare and hospital workers, police and corrections officers, teachers, and utility workers. The patterns shown in the brief can help inform policymakers at the federal level as they consider how much and what kind of relief to provide and where to target these dollars to mitigate the current crisis. However, the authors point out, the desirability of this relief should prompt discussions about our current system of fiscal federalism and the benefits of revenue diversification.

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Additional Research

Policies to Help Communities Recover: Economic Uncertainty

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Salim Furth, Nolan Gray, and Emily Hamilton

Policies to Help Communities Recover: Commuting

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Salim Furth, Nolan Gray, and Emily Hamilton

Policies to Help Communities Recover: Housing Restrictions

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Salim Furth, Nolan Gray, and Emily Hamilton

The Social Discount Rate: A Primer for Policymakers

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James Broughel

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