February 01, 2011

State Budget Deficit: Raise Taxes or Reduce Spending?

Posted: Feb 01, 2011 | 9 min 57 sec

State lawmakers have two primary options to erase the State’s massive budget deficit: 1) raise taxes or, 2) cut government spending. Both have a negative impact on Arizona’s economy, but according to a new analysis by the L. William Seidman Research Institute at ASU’s W. P. Carey School of Business, one option is less economically harmful than the other. Tom R. Rex, associate director of the Center for Competitiveness and Prosperity Research, explains.

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