Tax Collections Below Recession Levels in 29 States
November 11, 2014 Taxation in USA
WASHINGTON D.C. – While tax revenues collected by state governments in the USA are showing an overall rise since 2008, some states, such as Alaska, have seen their collections fall by as much as 68 percent.
The total tax revenues collected by state governments in the USA are now higher than their pre-recession peak, despite the fact that tax collections in more than half of states are still below the levels seen in 2008, according to the results of new research released on November 10th by the US-based non-government organization Pew Foundation.
In the newly published report the researchers of the Pew Foundation showed that the cumulative collection of tax revenues by state governments in the USA over the second quarter of 2014 was 1.6 percent higher than the tax collections in the third quarter of 2008, right before the global financial crisis took effect on state-level tax revenues.
At last quarter of 2013 and the first quarter of 2014 the cumulative tax revenues were an even higher 2.6 percent and 2.4 percent the levels recorded in the third quarter of 2008.
However, despite the fact that cumulative tax revenues are above the levels seen in 2008, it is estimated that 29 of the 50 states in the USA are still seeing tax revenues at levels below those in 2008.
The biggest difference between current and previous tax revenues can be seen in the states of Alaska and New Mexico where tax revenues are now 68.6 percent and 25.5 percent below their 2008 levels.