State Tax Revenues Plummet, Record

State Tax Revenues Plummet By $87 Billion, Biggest Year Over Year Decline In History; Record State Tax Hikes In Progress

Submitted by Tyler Durden on 03/08/2010 13:16 -0500

Florida Greece Indiana Personal Income Recession State Tax Revenues Tax Revenue Unemployment Unemployment Insurance

The Center on Budget and Policy Priorities has released a report “State Tax Changes in Response to the Recession” in which the center notes that “national recession has had such a devastating effect on state finances that states took in $87 billion less in tax revenue from October 2008 through September 2009 than they collected in the previous 12 months. This 11 percent decline, the steepest on record, resulted from the impact on tax collections of lost jobs, reduced wages, and lowered economic activity.” And here we are, missing the forest for the Greek tree, and discussing evil CDS speculators' role in Greece barely able to make a €5 billion bond auction, when we should be all over the evil Municipal CDS speculators wreaking havoc in our own back yard.

And it actually gets worse: as we have pointed out, states are now running on fiscal fumes, as record unemployment insurance claims bleed the vast majority of state not only dry, but well in credit to the Federal government. “At the same time, the recession has driven up the number of people needing various state services. This, along with the requirement that states have balanced budgets, has increased the pressure on states to deal with the unprecedented revenue shortfalls in a variety of ways. Nearly all states have cut spending. In addition, most have opted for a balanced approach that includes revenue.”

So while Obama is about to break all campaign promises about taxing everyone, let alone those who make under $250,000, individual states have already raised taxes by substantial amounts in an unprecedentedly short period of time.

continues … State Tax Revenues Plummet By $87 Billion, Biggest Year Over Year Decline In History; Record State Tax Hikes In Progress | zero hedge.

Check These Related posts:

1. Record monthly deficit for U.S.
2. More States On Brink
3. Foreclosure Record
4. Food Stamps Go to a Record 37.2 Million
5. Arkansas more cuts likely