The Tax Reduction Fund is a special fund that consists of money transferred to it by the legislature and any interest earned on money in the fund that can be used to temporarily reduce a state’s tax rate. The goal of the Tax Reduction Fund is to lower the bottom line of the budget by transferring funds that may be available in the budget that would otherwise be spent and returning those dollars to taxpayers by reducing the broadest state tax.
Recommendations
- Create the STaR Fund in 2019 to provide a means for reducing the bottom line of the budget while returning those dollars to the taxpayers by reducing taxes.
- By appropriating dollars that were earmarked for budget growth directly into the STaR Fund along with excess dollars in the to provide tax relief, legislators can restrain the growth of government.