Josh Goodman

As Americans file their state and federal income taxes this month, history suggests that they will pay hundreds of billions of dollars less than they should. This “tax gap”—the difference between the taxes legally owed to the government and the amount paid—is caused by taxpayers who should file but do not, who underreport their income, and who do not pay in a timely manner.

Few states measure the difference between taxes owed and paid, even as budget pressures mount.

Empty and partially empty office buildings are one of the enduring legacies of the COVID-19 pandemic. Six years after the pandemic sent many employees to work from home, office vacancies remain 50% above pre-2020 rates. As many experts recognized from the start, the shift to remote and hybrid work has potentially far-reaching consequences for city governments that depend on commercial property taxes for revenue and on vibrant downtowns for economic growth.

Local leaders are testing new strategies to revive downtowns as office vacancies threaten tax bases.

A Pew analysis highlights how local leaders are confronting persistent office vacancies and revenue risks.

For eight weeks this summer, starting on July 15, Indiana is offering many individuals and businesses who owe back taxes a deal: no penalties, no interest, and no prosecution if they simply pay the past-due amount.

Indiana, Illinois and New Hampshire have offered taxpayers a break on penalties and interest as fiscal pressures mount, despite warnings that the strategy can come with long-term costs.