TAX AMNESTIES PROLIFERATE. Last week, it's a method of boosting the cash position of U.S. companies. This week, it's a method of boosting the cash positions of state treasuries.

Desperate to bring in revenue in the middle of a recession, states across the country are adopting tax amnesty programs, offering to let people pay their past-due tax bills with little or no penalties or interest.

"Something is better than nothing," said Dino DiCianno, executive director of the Nevada Taxation Department. DiCianno said Nevada gave up more than $14 million in penalties and interest to collect nearly $41 million between July and October.

Oklahoma, like Nevada, generated about twice as much as it expected from its offer of amnesty, raising $82 million through its 90-day Clean Slate program for businesses and individuals.

The tradeoffs, including the time-inconsistency problem, are the same as they are in theft or immigration amnesty.

Many states are reluctant to offer amnesty, arguing that its rewards cheaters, discourages honest taxpayers and poaches revenue the states will collect in the future - especially as they improve the databases they use to catch delinquents. They worry, too, that people will hold back on their taxes and simply wait for the next amnesty.

"If the attitude is we're going to hand out get-out-of-jail-free cards, people's attitudes can change," said Paul Warren of the California Legislative Analyst's Office. "You can have a breakdown in compliance."

And yet, states consider them. Despite the potential time inconsistency problem, or perhaps because of it, tax amnesties, and periodic library fine amnesties, tend to bring in more revenue, or more missing books, than the planners anticipate.