States Should Modernize Taxes to Manage Structural Deficits, CBPP Argues, Finding ‘No Bubble' in State, Local Bond Markets

The CBPP argues that operating deficits are short-term budget problems that require a different solution from long-term problems such as bond indebtedness, pension obligations, and retiree health care. The solution to ongoing structural budget deficits is fundamental tax reform, which must take into account the increased role of electronic commerce, services, and telecommunications in the modern economy.