Several states are facing huge structural budget deficits as they come back to their state capitols this month. In the past year several states raised taxes to deal with budget gaps. These taxes were generally on minority groups such as high-income earners, smokers, out-of-state business transactions, or other targeted groups. In this podcast we discuss some of the trends in taxation from 2009, what to expect in state taxes in 2010 and what are sustainable options for states to balance their budget with declining revenues due to the economic downturn.

Joining the podcast to discuss these issues is Joe Henchman of the Tax Foundation. Mr. Henchman, is the Tax Counsel and Director of State Projects at the Tax Foundation in Washington DC.