Missouri State University’s Dr. Yuhua Qiao, professor in the Department of Political Science and Philosophy, recently published her second book, “State Tax Systems: Policy Making for Fiscal Stability.”

Qiao has been teaching at Missouri State since 1998. She specializes in state budgetary issues, including taxes, expenditure, intergovernmental fiscal relations and voter impact on state budgeting.

“I am always interested in state finance. States are responsible for so many public services, and their fiscal wellbeing is critical to the welfare of the people,” she explained.

She published her first book, “Interstate Fiscal Disparities in America: A Study of Trends and Causes,” in 1999. The book, based on her dissertation research, examines state expenditures in various service areas and why they differed among states. She has also published numerous journal articles on state finance.

Qiao’s latest book is “highly useful to policymakers,” said Dr. Christopher Lynch, head of the political science and philosophy department.

Examines impact of tax policies after the Great Recession

Although “State Tax Systems” is an extension of Qiao’s long-term research and teaching in public budgeting, the Great Recession of 2007-2009 inspired her to place her research in book form.

“The Great Recession of 2007-2009 was the worst fiscal time for states,” Qiao said. “Nearly all states suffered huge budget deficits, and the cuts on public services were widespread, significant and persistent.”

“The fiscal troubles not only reflected the impact of cyclical economic recession on state finance but also exposed the dire long-term fiscal imbalance between their revenue systems and expenditure policies,” she added.

Qiao said previous scholarship had explored various aspects of state fiscal sustainability, but the Great Recession made it clear that states governments had to act to address fiscal imbalances.

“What happened in the Great Recession and its aftermath provided pressure and political will for state governments to reform their tax policies to improve their fiscal stability,” Qiao explained.

Recommends approaching tax policy with caution

Before states enact any major tax policy changes, they should conduct careful studies to determine the short- and long-term impacts on revenue collection, Qiao said. “To a large extent, cutting tax — particularly income tax — is always politically popular, but this is not always a sound tax policy.”

“State tax systems cannot generate adequate revenue to support their long-term obligations,” Qiao explained. “Several factors contribute to this fiscal imbalance. Elected officials, who focus on their short-term gains, often cut taxes to please their constituents. At the same time voters — through ballot measures in many states — demand tax cuts but more services. Technology has also contributed to the erosion of tax bases, particularly the sales and fuel tax bases.”

One of the most surprising outcomes of her research, Qiao observed, was that several state legislatures did not learn the lessons of the Great Recession.

She expected to see states exercise caution regarding tax cuts and work to restore or preserve their tax base. A broad tax base is “essential for a sound tax system,” she said.

“Many states tried to do this in the first few years after the Great Recession, but in more recent years, they have not.”

Marathon writing schedule

Once Qiao decided to expand her research into a book, she obtained a one semester sabbatical in Fall 2019. She used the time to review scholarly literature on the subject, examine the National Conference of State Legislature Tax Database, define her research scope and begin writing.

After she signed her publication contract with Taylor and Francis in 2023, she worked “tirelessly, literally tirelessly,” to meet the manuscript deadline in August 2024, all while teaching a full load.

Teaching style connects students to research

The writing schedule was often grueling and stressful, Qiao admitted. Yet she found support and camaraderie with her colleagues and her students.

“I felt I really needed some cheerleaders,” she said. So, during the Spring 2024 semester, she turned to her Public Administration (PLS 255) students.

“I told my students that I must finish my book manuscript that summer and suggested that we dedicate several 10-minute sessions throughout the semester discussing a certain type of tax,” she said. Qiao asked her students to bring an article about taxes for the class to discuss.

The activity helped her feel more connected and supported by her students, she said.

Graduate students develop advanced skills

In addition, Qiao engaged her graduate students in her Financial Management for State and Local Government (PLS 756) course by using discussion forums to explore how state fiscal policies affect fiscal stability.

Meanwhile, her graduate assistants worked closely with QIao throughout the book preparation process, assisting with research, data tally and chapter draft reviews.

Qiao’s current graduate assistant, Emily Snodderly, helped with the final stages of the editing process for the book. She proofread the manuscript to catch errors, review sources and check for clarity.

“In the end, I think I read through the whole manuscript three times,” she said. “It was a little overwhelming, because it was a lot of reading to do in very little time, but I really enjoyed the work. Also, it was super exciting to see the final product!”

“I am very grateful for the experience,” Snodderly added. “State tax policy is probably not a topic I would have chosen to study if left to my own devices. However, in reading Dr. Qiao’s book, I was struck by how crucial tax and budget policies are for creating thriving communities. Since then, I have developed an interest in the subject, and I am considering a career in tax and budget policy research.”

Lynch pointed out how Qiao’s students gain experience from her research and teaching practices.

“Dr. Qiao’s research building toward this book has greatly enriched the learning of her students, both undergraduate and graduate,” he said. Her graduate students especially benefit from “working side-by-side with a serious researcher before going on, in many cases, to careers in public administration.”

Contributing to tax policy conversations

Qiao said she feels like “a free person” now that the book has been published. And she is pleased her research is available for others to use.

“It was so much hard work in the midst of many other responsibilities, including full time teaching,” she said. “But I also feel happy because I believe the research will contribute to the discussion of the big question about state tax policies and state fiscal stability.”

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