Sunday, October 11, 2009
State Tax Collections
"State tax revenues in the second quarter plunged 17% from a year earlier as rising unemployment and reduced spending hurt sales- and income-tax collections, according to Census Bureau figures released Tuesday. The decline was the sharpest since at least the 1960s. ... But with tax collections continuing to decline, many have been forced to reopen budgets after they have been passed to push through even bigger cuts to staffing and servicces. States, unlike the federal government, are generally required to balance their budgets. ... 'Anything is fair game,' said Amber King, a public information officer for [Louisiana] state Treasurer John N. Kennedy, who serves on the 'streamlining commission.' ... In Arizona, overall tax revenues fell 27% in the second quarter. Tax revenues fell 12% in Florida and 14% in California. ... Eleven states--including California, New York and Wisconsin--saw personal income taxes fall more than 30%", Connor Dougherty at the WSJ, 30 September 2009, link: http://online.wsj.com/article/SB125424963214850111.html.
Muni bond buyers, good luck. If anything is on the table, how about repudiating Louisiana's muni bonds? Only fat cat, tax avoiders own them anyway.