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.