Yesterday, we showed the chart of how ugly things had become for Federal Withholding Tax reciepts.
Today, we bring a similar chasrt, only this time, of the States Tax Revenue — which is similarly ugly:
chart courtesy of NYT
As you can see, we are much deeper than the 2001 recession.
“The anemic economy decimated state tax collections during the first three months of the year, according to a report released Friday by the Rockefeller Institute of Government. The drop in revenues was the steepest in the 46 years that quarterly data has been available.
The blow to state coffers, which the report said appeared to worsen in the second quarter of the year, reflects the gravity of the recession and suggests the extent to which many states will probably have to resort to more spending cuts or tax increases to balance their budgets.
Over all, the report found that state tax collections dropped 11.7 percent in the first three months of 2009, compared with the same period last year. After adjusting for inflation, new changes in tax rates and other anomalies, the report found that tax revenues had declined in 47 of the 50 states in the quarter.
All the major sources of state tax revenue — sales taxes, personal income taxes and corporate income taxes — took serious blows, the report found.”
And what is amazing, as bad as Q1 turned out, the quarter that just finished (Q2) looks to be even worse.
State Tax Revenues at Record Low, Rockefeller Institute Finds
NYT, July 17, 2009