Ah, the thing few think about. With so many people out of a job, the middle class now squeezed bone dry, tax revenues are dropping like a stone.
A report, State Tax Decline in Early 2009 Was the Sharpest on Record (pdf), by the Nelson A. Rockefeller Institute, has some damning stats.
- State tax collections for the firstcquarter of 2009 showed a drop of 11.7 percent, the sharpest decline in the 46 years for which quarterly data are available. Combining the Census Bureau’s quarterly data with its annual statistical series, which extends back to 1952, the most recent decline in state tax revenues was the worst on record.
- After adjusting for inflation, legislative changes, and known anomalies, tax revenue declined in 47 states.
- The personal income tax decline was particularly sharp, an unprecedented 17.5 percent in nominal terms. The inflation-adjusted decline in state personal income taxes was the greatest in the 46 years for which quarterly data are available.
- Early figures for April and May of 2009 show an overall decline of nearly 20 percent for total taxes, a further dramatic worsening of fiscal conditions nationwide. Preliminary figures for the state fiscal year 2009 indicate around 8 percent decline in total taxes, 13 percent in personal income taxes, and 5 percent in sales taxes.
Scan down the entire report to corporate taxes. While they show most states barely collect them, the report shows what is collected is severely down as well.
Nominal corporate tax revenue decreased 18.8 percent in the January-March quarter compared to a year earlier, the seventh consecutive decline. All regions but the Far West and Southwest reported sharp declines, with the Rocky Mountain region reporting the largest decline at 65.8 percent. Among 46 states for which the Census Bureau reported corporate tax data, 37 showed decreases in corporate tax revenue.
On a national level, Matt Trivisonno also shows dramatic declines.
Trivisonno's blog uses Google Chart API (which is pretty cool, I'll have to check that out) and you can create additional charts from his site on tax collections.