Posted on 02/23/2010 9:27:50 PM PST by Cheap_Hessian
HELENA, Mont. (AP) -- States again saw sharp declines in tax collections in the last quarter of 2009 -- a record fifth straight quarterly drop, according to a new report that predicts more looming spending cuts or tax increases.
Overall, revenue from state tax collections dropped 4.1 percent for the quarter compared to the same quarter in 2008, the Rockefeller Institute of Government reported Tuesday.
For some governors and lawmakers already grappling with painful budget decisions, the latest figures -- while offering more evidence of the grim economy -- weren't all that surprising.
"It is topic number one," said Montana Gov. Brian Schweitzer, returning from a weekend meeting of the nation's governors. "Sharing or comparing ideas, in some cases horror stories, is what we do."
The institute said that states that already have slashed spending or raised taxes will need to do more. Beleaguered governments have been cutting back on schools, social programs and prison costs -- such as by releasing inmates early.
(Excerpt) Read more at finance.yahoo.com ...
Montana doesn’t have a sales tax except in resort areas.
Unlike the Feds, the states can’t theoretically borrow themselves into oblivion with stimulus spending. So... expect spending cuts at the state level...
I’m sure my son appreciates that...(college - no income yet).. but, how can they tax a portion of the state (resort - who decides?).
Tax collections aka revenues down? Raise taxes, that will fix it!
Morons.
MT also had a $ 1 Billion revenue surplus a year or two ago. The legislature promptly spent it.
It’s not just a good idea, it’s the LAW. They have districts or certain cities/towns, not unlike, say, NYC sales tax on top of state sales tax. In this case the state sales tax just happens to be zero.
Illinois plans to tax retirees’ pensions. Look for a stream of Winnebagos leaving the state.
Morons, indeed.
So the states will raise whatever taxes they can, making everyone even more broke... then blame it on Bush while praising Obama for his miracles which we’re too stupid to see.
Well...sounds like a LAW that I would like! Really, taxing anything in any city for any activity is just stupid, unless you want less of that..(and less money).
Not really sure of your point though... I was just thinking like Texas (no income tax) and wishing that they also did not have sales tax. Maybe Montana is ahead of the curve...or maybe just penalizing actions they (politicians) do not like.
The dateline was Helena.
Sales tax revenues down in the fourth quarter of 2009? But, but , but I thought the Obama administration told us the the fourth quarter of 2009 showed robust growth, 5.9% or so. Something does not add up.
And? Not really sure what you are saying...
It adds up. The Democrats have to try to cover up reality and natural law is winning.
“I was just thinking like Texas (no income tax) and wishing that they also did not have sales tax...
We don’t have sales tax on groceries so that’s not so bad. But we do have sales tax on some really strange things - like the guy that mows my lawn pays sales tax on his labor, some non-profits have to pay sales tax on money collected if they have an auction, even if the item was donated and the donor had already paid sales tax once.
Well, does not sound too bad. I doubt that my son will work there after his college, but it does seem to be a decent low tax state. Your examples do make the case for strange taxes though...heh.
I’m sure that my son will find southern states more acceptable though, if nothing else than the weather. Back to Texas if he is smart..(and I know he is)...
Exactly. And this is one of the reasons why now, as an investor, I’m paying very close attention to the tax revenue streams - because they’re not a statistical model of sales or economic activity, they’re a direct function (and with sales taxes, very directly) of economic activity that cannot be fudged with statistics.
And the numbers from across the states show only a little recovery and only in certain areas for brief periods of time.
The State of Montana, where I reside. has no sate sales tax. I have never paid any sales tax anywhere. If resort areas have a sales tax, it is local and unbeknownst to me.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.