Deficit Reduction on the Brain (and the Agenda)
Even before the November 2010 elections, there was a palpable sense that the focus of the federal budget was about to shift from economic recovery to deficit reduction. The issuance of two major deficit-reduction proposals has added fuel to the deficit-reduction fire, and the coming months are expected to see actual policy proposals that mirror some of the suggestions in those two reports. The stakes are high for states, as the tax reforms included in the proposals, as well as their spending-reduction options, would have significant impacts on state budgets.