The Congressional Budget Office consistently concludes that infrastructure and other state spending provide considerable boosts to the economy, while income tax changes for high- income households have minimal impact on short-term economic activity. Tax cuts for affluent households result in small increases in spending, and tax hikes result in only small decreases. Low- and middle-income households, on the other hand, have little savings, and reductions in their after-tax income result in equivalent reductions in spending. By minimizing spending cuts and drags on private spending, states can minimize the harm to their economies and to employment created by their actions
