When having budget surpluses due to a strong economy in the past, state governments dealt with it in different ways. Some states, like Arizona, have at times chosen to permanently cut their taxes, such as reducing income tax rates. Other states, like Minnesota, have opted for a one-time tax rebate, i.e., sending every citizen a tax rebate check for the year without actually reducing tax rates. Please discuss the relative merits of these two methods in terms of their impact on government budget at the present and in the future. When discussing, you need to discuss each methods impact on cyclical and structural budget balances?