Thanks @BharatRamamurti for breaking down the paper so well -- States are facing huge shortfalls, and they need fiscal relief, but they also have room to raise revenue and should do it to *expand* services during this unprecedented crisis https://twitter.com/BharatRamamurti/status/1285942057572413443

Many policymakers worry about raising taxes during a recession, but if you can't borrow to expand services (as most states can't) you have to raise revenue. Policymakers trying to "open up the economy" must understand: cutting services and gov. employment will kill the recovery

When you fire a teacher, you harm her students, her family, and the parents who rely on her to care for their kids while they work. But if that isn't reason enough to raise taxes... you also cause her to cut her spending in a way that ripples through the local economy

Using conservative economic multipliers from CBO, a $1 cut to direct gov spending drains $1.50 from economic activity. Meanwhile, raising $1 in taxes on the rich costs perhaps 35 cents. Even if all you care about is GDP, states should *pour* progressive revenues into services.

And states and localities shouldn't stop at avoiding cuts -- we are in the midst of a GLOBAL HEALTH CRISIS and people need MORE from their government. There is no economic recovery without healthcare, housing, schools, and cash assistance.

#WeAreTheEconomy

Crucial point: while tens of millions of workers are unemployed or losing income, many households can afford to pay more. As of the end of May, half of households told the Census Bureau they had lost *no* employment income. That figure is 2/3 for households making >$200k

These same rich households already pay a lower tax rate at the state level than poor households -- and they were handed trillions of dollars by the 2017 Trump tax bill. They must be asked to contribute more during this crisis.

This is a critical racial and gender equity issue. Regressive, inadequate state tax systems disproportionately burden communities of color. And now cuts to state services will mean layoffs that disproportionately harm women and Black workers https://www.epi.org/blog/cuts-to-the-state-and-local-public-sector-will-disproportionately-harm-women-and-black-workers/