I've always paid close attention to tax revenue, because I believe that tax revenues show a very honest perspective of the economy. See, while job numbers can be easily cooked, it's more difficult for a state government to produce money that doesn't come in.
Here's a small look at the state of the economy from the prespectives of three states: Colorado, New York and California.
Sales tax revenue in Colorado dropped 9.1% in November, California’s revenue dropped 0.6 percent in November (compared to last November) and New York Governor Patterson withheld a $750 million payment to local governments to save cash.
If the economy is recovering, why is the government declaring that tens of thousands of unemployed people to be not apart of the workforce? Is this how the government deals with bad news? Cover it up. Well, it's becoming increasing harder to cover up the face that more and Americans are losing their jobs and don't have the money to pay state taxes.
Sales Tax Revenues Down in November
http://www.publicbroadcasting.net/kunc/news.newsmain/article/1/0/1588748/Regional/Sales.Tax.Revenues.Down.in.November
N.Y. Governor Delays $750 Million of Aid to Save Cash
http://www.bloomberg.com/apps/news?pid=20601103&sid=aeckgC8VeJ90
California’s Revenue Slides $33 Million in November
http://www.bloomberg.com/apps/news?pid=20601103&sid=awI2XfWyHq9c
That graph is scary!
ReplyDeleteBtw, the government *does* give the unemployed to pay taxes from our UI cheques, but most of us choose not to since the cheques are so meager.
Oops, typo in my last comment; I meant to say that the government does give the unemployed the chance to pay taxes from unemployment cheques, but I don't think most people do because the cheques are so meager.
ReplyDeleteSorry.
Reginald the tax revenue bottomed out in the spring of 09. That graph doesn't show that it ends at the end of 08. Furthermore your comparing year over year, but if you compare tax revenue from just a few months ago its bottomed a few months ago.
ReplyDeleteIt’s the second straight month that California’s receipts were close to or exceeded the state’s estimates, a sign the holes in the $85 billion annual budget aren’t widening.
ReplyDeleteCalifornia Sales taxes rose $408 million, or 14 percent, from a year earlier, to $3.4 billion.
ReplyDeleteWell, like I always say, the economy never goes straight down or straight up. There are always bumps and drawbacks. But when you look at the overall tax situation in California, it is absolute horrible. It's not like it's getting better. You seem to be arguing that it's not getting worse for the moment.
ReplyDeleteActually sales tax receipts jumped up 14 percent year over year for california (the true measure of the consumer in california). The other stuff declined because of layoffs (so less people on jobs compared to last year and because of businesses having to restructure (so it costs them money). Business and state revenues always lag a recession for up to 2 years. The key is SALES TAX has jumped.
ReplyDeleteIf you don't think 14 percent jump year over year isn't a sign of recovery then I don't know what is. :)
The sales tax revenue rose 14% in November, but the income tax revenue decreased by 14%. What that means it that people are earning less, but people are paying more in sales tax.
ReplyDeleteWhy?
Because CA increased its sales taxes. Which is why sales tax revenue is higher this year then last year.
http://www.boe.ca.gov/sutax/0401TaxIncrease.htm
Checkmate!
:)
Ooh Reginald I forgot that point. Ooh you got me there.
ReplyDeleteRegardless though it doesn't change the fact that sales tax receipts and other tax receipts bottomed out nationally for the most part a few months ago. Now were just bottom bouncing for the most part.
There are some very foolish people who are commenting here who just want things to be "good" when the reality is that they are not good. What a joke.
ReplyDelete