State Tax Receipts “Plummetting”

May 14, 2009 at 7:40 am  ·  Category: Macro Economics

We don’t normally use the word plummet but that is the operative word right now.

Robert Ward (subscription required), Deputy Director, Nelson Rockefeller Insitute of Government

For all of you who think the economy is recovering, take a look at a sobering report from the Nelson Rockefeller Institute of Government released yesterday on state tax receipts.  Personal income tax receipts fell 15.8% and sales taxes 7.6% in the 1st quarter (excluding Montana, Nevada and New Mexico).

1q-state-tax-receipts

Think about it: state income tax and sales tax receipts are directly correlated to personal income and spending.  If the former are falling off a cliff, the latter are too.  That means the economy is not showing signs of recovery.  Do the math.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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