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Friday, June 16, 2017

Ominous signs for states as revenue targets missed

Two out of every three states in America took in less tax revenue than expected this year, the worst performance since the depths of the recession, and twenty states expect to address budget shortfalls in the coming year.

The new data, contained in three reports released by state budget analysts this week, raise concerns that states could face a new round of belt-tightening — and that another economic slowdown could be just around the corner.

The reports cite a variety of factors behind the revenue slowdowns, from falling commodity prices to the rising costs of government services. Some of the slowdown also likely comes from wealthy taxpayers and corporations, which have delayed some tax payments until next year in hopes that tax reform proposals will pass Congress.

Thirty-three states will miss revenue projections in Fiscal Year 2017,according to the National Association of State Budget Officers. That’s the highest number of states to miss revenue targets since 2010, during the middle of the recession, when 36 states missed projections.

In total, states anticipate revenues falling short by $12 billion. Most of the shortfall comes from sales tax collections, which are projected to be down $6.6 billion. That troubles some economists because sales taxes are traditionally the most stable revenue sources for states.

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2 comments:

lmclain said...

My God.
IMAGINE the urgent meetings going on at the Governor's mansion as he instructs the Tax guys to go after every red cent. Then, turning to the State Police, he says "Get some miltary-type campaigns going on and convince the people that we rob them, harrass them, fine them and sometimes kill them, but its FOR THEIR OWN GOOD!" ---just get me some MORE MONEY!.
He also instructs every department head to raise application fees, increase permit costs, and start fining "we, the people" to make up for the money we DIDN'T TAKE from them yet.
Maybe some casinos.
The last thing he says is to his travel scretary ---
"Have you booked my and my family's trip to Singapore yet? We need to go find some "facts". Book us First Class, too and make sure you take our staffs, too. There are probably a LOT of "facts" we'll need to find.
Where will we get the money, Governor?
He points to the State police commander and says "Meet our gold mine director"....whatever we need, he can come up with it."
Get ready for a fun summer of traveling.
Keep cheering!!

Anonymous said...

Stop the spending and handouts ! Why can't the government control their finances like my household ? So pathetic.