Revenue Fall “Surprise” State Governments
June 13, 2014 Taxation in USA
WASHINGTON D.C. – Tax changes implemented last year in the USA have been shown to have had a significant negative effect on tax collections over the first four months of this year.
On June 12 the US based non-government organization the Rockefeller Institute issued a new report on the level of collections of personal taxes in the USA over the first four months of the year, claiming that many state governments were “surprised” by the sharp decline in tax revenues during the period.
According to the researchers of the Institute, in the month of April alone the collection of tax revenues fell by 15.8 percent lower than during the same month in 2013, a drop equivalent to USD 7.9 billion.
Over the first four months of the year, the drop in the collection of tax revenues from the collection of personal taxes also fell by 7.1 percent compared to the same period in the previous year.
The significantly lower tax collections during 2014 was attributed to the fact “…the federal tax rate increase on capital gains in January of 2013 created an incentive for taxpayers to accelerate capital gains”, ultimately raising tax revenues last year compared to the current year.