State Tax Receipts “Plummetting”

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).

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.