Nathan Goldman, assistant professor of accounting, co-authored research that found that states with increased progressive tax rates and COVID-19 restrictions performed better in terms of state income tax collections. However, this combination led to an unintended consequence of higher income inequality.
“It seems counterintuitive, but progressive income tax rates can prolong the use of policies that increase inequality because the policies less adversely impact state budget deficits,” said Goldman. “In the case of the pandemic, COVID-19 restrictions unintentionally favored people whose jobs weren’t dependent on being in a face-to-face environment.”
