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PA 581 Tax Expenditure Budget Discussions 1 Week 6
Does your state develop a tax expenditure budget? Does it prepare impact statements? What are some of the issues/challenges that can arise in forecasting government revenue (local, state, and/or federal)? Which of them would you consider the most difficult to address/circumvent?
Additionally, how is the baseline revenue forecast prepared? If the present tax structure is the normal tax baseline, what is the level of tax expenditures?
Finally, please select one of the alternative methods of revenue forecasting as discussed in the textbook (Chapter 12) and briefly describe what it involves and where/when it can be best employed (and why)…