State Tax Revenues Rose in All States in 2011, Led by an Energy-Related Gain of 44.5% in N. Dakota
1. CNBC -- "Tax collection rose in all 50 states in fiscal 2011, and in nine states
increased by more than 10 percent, according to U.S. Census data released on Thursday that marked the end of a severe revenue collapse. Tax collections rose the most in North Dakota, 44.5 percent, followed by
oil giant Alaska, 22.4 percent. They were up 17.4 percent in
California, 15.3 percent in Illinois and 15.1 percent in New Mexico.
Wyoming, also a state that produces energy sources, had revenue increase
14.1 percent in the fiscal year."
2. The Tax Foundation has a related post with a historical chart and a table ranked by percentage increases.
8 Comments:
this seems like what one might expect.
loss carryforwards from the 2008-9 crash have wound down and lots of states have imposed new taxes or hiked sales taxes.
it's interesting that it is still so far below 2008 though, though that may be cap gains and real estate prices playing out.
I agree with morganovich but want to add the much higher pension liabilities. Zero interest rates have a way of destroying pension plans.
v-
that's an interesting point about the pension plans.
of course, zirp can make them look a bit better in the short run by driving up bond prices and thereby NAV's, but where to put new money becomes a serious conundrum, and, of course, zirp will, at some point, end, and that will drive NAV's back down and open up some serious holes in pension asset coverage ratios.
this lengthy excursion into zero rates is just setting up the next crisis. bernanke has really painted himself into a corner here.
of course, zirp can make them look a bit better in the short run by driving up bond prices and thereby NAV's, but where to put new money becomes a serious conundrum, and, of course, zirp will, at some point, end, and that will drive NAV's back down and open up some serious holes in pension asset coverage ratios.
The same process that drives up bond prices also drives up the pension liabilities. Keep in mind that most funds do not hold a lot of long bonds. As such the price increase due to a fall in the short term rates is smaller than the increase of the liabilities. Think of being a plan administrator who has to buy annuities to cover a retirement that is expected to last 20 years in a zero interest environment.
This is one subject that the professor gives little thought too...
Mr Perry, thinks that the economy is growing because of increases in tax revenue, when in fact, much of these increase come from increase of rates...
This is why the feds have not included taxes in their CPI-U Index, as it typical represents families second or third largest expense...
BTW, do not believe the BIG lie that property taxes are declining, either..In my metro (Twin Cities, Mn) they have been soaring for the past five years..
I needed to add this crucial information, as there are times when headline can not and should not be believed...
"According to the Brookings report, a whopping 40 states raised taxes between fiscal year 2009 and 2011. Only eight cut taxes. Based on the report, 24/7 Wall St. examined the six states that increased revenue from taxes by 9% or more during the period. While these states increased revenue the most, spending cuts appear to be critical to managing deficits for nearly all of the states."
http://247wallst.com/2012/03/19/the-six-states-where-tax-revenues-are-soaring/
"Mr Perry, thinks that the economy is growing because of increases in tax revenue, when in fact, much of these increase come from increase of rates..."
Wait a minute, I need to think about that. :)
The Fiscal situation of the states is very dire to say the least. Raising taxes which many states have been doing is not the remedy for solving their fiscal problems.
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