US State Revenues Continue to Grow
December 8, 2011 Taxation in USA
ALBANY – Tax revenues are on the rise in the USA, with almost every state reporting an overall increase in tax collections when compared to last year.
On December 8th the Nelson A. Rockefeller Institute of Government released its quarterly report on tax revenues across the states of the USA, which showed that in the 3rd quarter of 2011 overall tax revenue levels rose by 7.3 percent, when compared to the same period in 2010. The change was comprised of a 9.2 percent rise in revenues from personal income taxes, a 5.2 percent increase in corporate income taxes, and 3.9 percent growth in sales tax revenues.
The authors of the report noted that the latest period of tax revenue growth is the seventh consecutive quarter to show an overall increase. However, the latest result was seen as a slowdown from the previous quarter when total growth was 10.8 percent, and the first quarter of 2011 when growth was 9.5 percent.
The largest increase in tax revenues was recorded in North Dakota, where collections were 157 percent above the same period last year. Alaska also saw a significant tax revenue boost, reporting growth of over 124 percent. The high tax collections in both states were attributed to rising international demand for oil and minerals, which are extracted in both states.
From the 48 states from which data was used, only two reported having an overall drop in tax revenues levels, with Delaware and Iowa seeing declines of 13.8 percent and 3.5 percent respectively. Missouri was the only state was recorded as having no change in its overall tax revenues.
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