States Loose 14 Billion in Tax Revenues
April 8, 2011 Taxation in USA
US states’ governments have seen another year of disappointing tax collections, with new data quantifying and confirming the negative economic prognosis’s given earlier in the year by some analysts.
State governments in the US are facing continued financial difficulties, with their tax revenues falling for the second year in a row. Over the 2010 fiscal year, total tax collections dropped by an estimated 2 percent, when compared to the levels seen in the 2009.
The latest revenue data was published by the Tax Foundation, a nonprofit organization monitoring US fiscal policy, on April 5th in its annual analysis of the US Census Bureau’s yearly tax collection statics release. Over the 2010 fiscal year US state governments collected a total of USD 705 billion in taxes. The figure was comprised of USD 236 billion in collections from individual income tax, USD 38 billion in corporate income tax, and USD 344 billion in Sales Taxes. Revenues from individual income taxes, corporate income taxes, and sales taxes all dropped throughout the year by approximately 4.5 percent, 6.7 percent and 0.2 percent respectively.
It was suggested in the analysis that the revenue levels will prove to have negative effects on state-level budgetary planning and expenditures. Total tax collections had also dropped by 8.4 percent in the 2009 fiscal year, putting a great strain on state coffers.
Alaska, Wyoming, New York and North Dakota were reported to have the highest tax collections, while Tennessee, Alabama, South Carolina and South Dakota had the lowest.
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