States across the U.S. are on a tax-cutting spree. In 2022, at least 35 states and D.C. will have passed tax cuts, according to a forthcoming report. The bipartisan tax-slashing bender looks likely to continue this year. The idea that tax cuts provide “inflation relief” gets the problem exactly backward.
States enjoyed this windfall partly because consumers had been spending with a vengeance. Writers: There are far better uses for these federal funds than just handing them over to constituents through tax cuts.