tax withholding

If the economy is growing, shouldn't tax revenue be increasing?

Remember how the nation's GDP was supposed to have grown by 2.2% in Q3 2009? Well then how come state tax revenue fell of a cliff in Q3 2009?

(Bloomberg) -- U.S. state tax collections fell the most in 46 years in the first three quarters of 2009 as the recession shrank revenue from sources including personal income, the Nelson A. Rockefeller Institute of Government said.
Revenue dropped 13.3 percent, or $80 billion, compared with the same nine months of 2008, to $523 billion, the institute said. Collections in the third quarter alone sank 10.9 percent to about $162 billion, according to the report released today by the Albany-based body.
The first three quarters of 2009 were the worst on record for states in terms of the decline in overall state tax collections, as well as the change in personal income and sales tax collections.