Thursday, December 31, 2009

WSJ: State, Local Tax Revenues Decline 7%

From Wall Street Journal

State, Local Tax Revenues Decline 7%

State and local tax revenues fell 7% in the third quarter of 2009 from a year ago, the Census Bureau said in a report underscoring how the economic downturn is stressing government collections.

Sales taxes declined 9% to $70 billion in the third quarter compared with the year-ago period, the Census Bureau said. Income taxes plunged 12% to about $58 billion. Together, sales and income taxes make up roughly half of state and local tax revenue.

These revenues continue to fall and will lag the recovery as the article points out. But a little more moderation in the pace of decline would would be nice to see as a confirmation of a more robust rate of recovery.

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