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WSJ: State Budgets Get Relief With Surge in Revenues - Corporate Profits, Rise in Pay, Housing Deals
Wall Street Journal ^ | June 14, 2005 | RAFAEL GERENA-MORALES

Posted on 06/14/2005 5:34:11 AM PDT by OESY

Strong gains in corporate profits, household income and home sales are swelling tax revenues for states nationwide, helping to close budget gaps and boost spending.

State-tax revenue for the July-March period of the fiscal year ending June 30 reached $387 billion, up 9.5% from the year-earlier period.... Tax collections in the January-March quarter were up 11.7%, the strongest year-on-year growth for that period since at least 1991. The institute also says that if the current pace continues, states are on track to take in a record $550 billion for the full fiscal year, which ends June 30 for most states....

The latest numbers mark a healthy turnaround from just a few years ago when many states were struggling. After the tech bubble burst in 2000, followed by the plunge in the stock market and recession, tax collections fell sharply across the country. But how long states will enjoy the current boon is unclear.

The rise in revenues stems partly from factors that may be short-lived, such as an unusual surge in bonuses or the huge Microsoft Corp. dividend payout. And most states still face budgetary pressures. According to the National Conference of State Legislatures, as of February, 31 states reported spending overruns for some portion of the budget during the current fiscal year, compared with 23 states reporting overruns in November.

Health-care costs are one of the biggest problems. Through the first eight months of the fiscal year, July to February, Medicaid and other health-care spending is exceeding appropriation in 23 states compared with 16 in November, the National Conference says.

For now, though, the windfall has loosened purse strings, boosting spending plans for roads in Florida, teachers in New York and public transportation in California, state officials say....

(Excerpt) Read more at ...

TOPICS: Business/Economy; Extended News; Government; News/Current Events; Politics/Elections
KEYWORDS: artlaffer; cary; laffercurve; states; taxcut

Thank you Art Laffer et al. See also
1 posted on 06/14/2005 5:34:11 AM PDT by OESY
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Bush's fault.

2 posted on 06/14/2005 5:35:28 AM PDT by EQAndyBuzz (Liberal Talking Point - Bush = Hitler ... Republican Talking Point - Let the Liberals Talk)
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To: EQAndyBuzz

Now if we can only get them to stop spending more, we'll be able to balance the budget.

3 posted on 06/14/2005 5:37:50 AM PDT by Brilliant
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To: Brilliant

I second that.

4 posted on 06/14/2005 5:39:58 AM PDT by Zeppelin (Keep on FReepin' on.....)
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With the help of turncoat republicans, Virginia's democrat guv (Mark Warner) succeeded in pushing through a sales tax increase which, by the time the increase took effect, the state budget had gone from the red into the black. Now, they won't give it back, even though it was sold to the people on grounds of fiscal oblivion if taxes hadn't been increased.

When campaigning, Warner succeeded in getting a lot of pubbie support by promising NOT to raise taxes. Needless to say, the media isn't punishing him a la Bush I.

5 posted on 06/14/2005 5:43:23 AM PDT by wayoverontheright
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To: wayoverontheright

"Needless to say, the media isn't punishing him a la Bush I."

Quite the contrary. They are pushing his name as a possible presidential contender as a "mocerate" Southern Governor. I live in Virginia, he is neither moderate nor Southern. Having lived in Fairfax county for thirty plus years, I can assure you that it "ain't" southern. We may as well live in Boston.

6 posted on 06/14/2005 6:29:51 AM PDT by billhilly (If you're lurking here from DU (Democrats unglued), I trust this post will make you sick)
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Simply Great News.......!

7 posted on 06/14/2005 7:30:43 AM PDT by Republic Rocker
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Does anyone have stats for Missouri?


8 posted on 06/14/2005 7:31:57 AM PDT by CDHart (The world has become a lunatic asylum and the lunatics are in charge.)
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To: CDHart

Great tag. ;-)

9 posted on 06/14/2005 9:25:15 AM PDT by lodwick (Integrity has no need of rules. Albert Camus)
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To: lodwick
Glad you like it! It's the truth, IMO.


10 posted on 06/14/2005 9:31:20 AM PDT by CDHart (The world has become a lunatic asylum and the lunatics are in charge.)
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Bonuses and the MS dividend are responsible for the rise in tax collections? This is actually from the WSJ?

Hello? How about real estate?

11 posted on 06/14/2005 9:39:29 AM PDT by VeniVidiVici (In God We Trust. All Others We Monitor.)
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