AP: States use budget surpluses for tax cuts, rebates
UC economics professor says action could be counterproductive, fuel inflation
With large budget surpluses, many states across the United States have issued tax cuts or tax rebates this year, the Associated Press reported.
Hernan Moscoso Boedo, PhD, associate professor of economics at the University of Cincinnati Carl H. Lindner College of Business.
At least 31 states have enacted some type of tax cut or rebate this year, using federal pandemic aid or their own surging tax revenue. Both Democratic- and Republican-controlled states have approved tax cuts and rebates.
With inflation at a 40-year high, state leaders have said the relief provided by tax cuts and rebates will help individuals manage the increased cost of goods and services.
However, tax rebates do little to fight inflation and “may actually be counterproductive” by enabling additional consumer spending on items in scarce supply and thus contributing to higher prices, said Hernan Moscoso Boedo, an associate professor of economics in the University of Cincinnati’s Carl H. Lindner College of Business.
Read more from the Associated Press.
Featured image at top courtesy of Unsplash.
Next Lives Here
The University of Cincinnati is classified as a Research 1 institution by the Carnegie Commission and is ranked in the National Science Foundation's Top-35 public research universities. UC's medical, graduate and undergraduate students and faculty investigate problems and innovate solutions with real-world impact. Next Lives Here.
Related Stories
Tips to avoid headaches this holiday season
December 15, 2025
A University of Cincinnati migraine expert offered a list of potential headache triggers around the holidays, and how you can try to avoid them, to 91.7 WVXU News. "There are a number of different factors that make this a very headache provocative time," said Vincent Martin, MD, professor of clinical medicine at the University of Cincinnati's College of Medicine and director of the Headache and Facial Pain Center at the Gardner Neuroscience Institute.
Local couple uses royalties from children's books to give gifts to kids in need
December 15, 2025
A local couple has found a unique way to give back to those in need this holiday season. Vic and Laura Troha wrote two children's books together, and this year, they are using the proceeds to buy Christmas gifts for Hamilton County foster kids. The couple are both graduates of the University of Cincinnati's College of Allied Health Sciences and met the day they graduated.
The hottest toys this holiday season
December 15, 2025
Local 12 turned to Lindner College of Business associate professor-educator of marketing Roseann Hassey to explain what’s got the trendiest items flying off the shelves.