Cancel out the noise of propagandist who continually say the economy is booming and follow the data. Wall Street Journal shows compelling data of states tax revenue is in bad shape as spending increases. Here is what the Wall Street Journal found:
There are 30 states still collecting less in taxes, adjusted for inflation, than when the recession hit, according to a Pew Charitable Trusts study that examined the data through September. Income-tax collections grew on a real basis by 7.1% since late 2008, while sales-tax receipts rose by 1%, according to an analysis by Nelson A. Rockefeller Institute of Government at the State University of New York.
Government employment is actually down on the state level. Most of the attrition is probably attributed to from an aging workforce i.e. retirement:
State and local governments are employing 620,000 fewer people than they did six years ago. New municipal-bond sales stand at a more-than-15-year low as states remain hesitant to start public works and other capital projects.
If anyone tells you all you have to do is magically raise taxes and all ills are solved, they are terribly wrong.
Coming out of the recession, several states raised sales-tax rates to make up for deep revenue drops. In Arizona, a sales-tax increase was only temporary, meant to serve as a three-year bridge until collections returned. Still, total tax revenues as of the third quarter of last year remained 10% below their prerecession levels on an inflation-adjusted basis, according to the Pew analysis.
You can read the rest of the Wall Street Journal article here.
CNSNews.com is reporting the federal governments 2015 first two fiscal months of tax revenue collected and how much it spent.
The U.S. Treasury continued to rake in tax dollars at a record rate in November as the federal government closed out the first two months of fiscal 2015 with $404,155,000,000 in total receipts, according to the Monthly Treasury Statement released today.
Even with these record revenues, the Treasury ran a deficit of $178.531 billion deficit in October and November as it spent $582.686 billion.
What were the sources of revenue?
The biggest source for the record federal revenue during the two-month period was the individual income tax. It brought in $192,619,000,000 in October and November. The second biggest source was “Social Insurance and Retirement Receipts,” the taxes Americans pay for Social Security and Medicare. These brought in $146,263,000,000.
The United States Treasury just released up to date tax revenue collection relating to 2014 fiscal government budget. 2014 government budget ends in September.
CSN News provides a more detailed analysis:
Inflation-adjusted federal tax revenues hit a record $2,469,178,000,000 for the first 10 months of the fiscal year this July, but the federal government still ran a $460,450,000,000 deficit during that time, according to the Monthly Treasury Statement.
After the current fiscal year, the second highest federal tax intake in the first 10 months of a fiscal year occurred in the first 10 months of fiscal 2007, when the government collected $2,432,115,460,000 in 2014 dollars – or $37,062,540,000 less than in the first 10 months of this fiscal year.
The total dollar amount already spent by the government stands at $2,929,628,000,000.
You can read the rest of the article here.
Economic news rolled out of Indianapolis today showing the State of Indiana continuing stable policies from years past. Many states have taken to spending quite a bit more in the last decade whether it be good or bad times. Indiana has taken a more valued approach to fiscal spending and cutting. CNHI Statehouse Bureau had more on this:
As of June 30, the state had a $106 million operating surplus and reserves of $2 billion, Auditor Suzanne Crouch reported Monday. Crouch, a Republican and former state lawmaker, praised Pence for Indiana’s strong financial state, saying his wise management decisions kept the state in the black. The state finished fiscal 2014 with a surplus after agencies cut spending by about $150 million from what the legislature allocated in the biennial budget crafted last year. Pence ordered those cuts last December, when tax collections were less than expected.
Governor Pence has continued on former Governor Daniel’s department cuts. Colleges had $34 Million cut. I really think colleges need drastically cut more as many of them are becoming wastelands of ideology that do not prepare teenagers coming out of highschool. How they are set up are very archaic and inefficient. The state has started pouring money into vocational training which will pay off in the coming decade. Five year trend that has popped up with dwindling tax revenue has been casinos. Ohio opening up casinos has taken a bite out of Indiana’s revenue in that area.
Democrats of course are not happy with the surplus. Here is what Senate Democratic Leader Tim Lanane, D-Anderson, said in a statement:
“Let’s not congratulate ourselves for hoarding tax dollars while so many of those taxpayers continue to struggle.”