In the past for months some states have seen growth in taxes and a majority has seen decrease in tax revenue. Overall in the past four months, states have seen a decrease in state tax revenue by 7.5 percent. This is thanks to the impact of the pandemic disrupting so much economic activity. Seven states actually reported growth such as Colorado, Georgia, Idaho, Nebraska, North Dakota, South Dakota, and Vermont. Another data showed that half of the states saw a decrease in impersonal income tax revenue. 10 states reported growth in this department. This trend of some states seeing increases and decreases can be attributed to the actions that the states policies and federal policy has had on each state with some having better process and behavior then others. This leads to them seeing growth instead of loss. With the nation seeing more and more unemployment benefits expiring and a second round of stimulus on its way, some states will need to manage their spreading thanks to a decrease in tax revenue. Hopefully another round of stimulus checks can help the states combat the increased spending they have to do.
https://www.usnews.com/news/best-states/articles/2020-09-17/coronavirus-slams-state-tax-revenues-and-more-pain-is-on-the-way
2 comments:
This is a totally different story for every state, as each has its own policies, which caused some to have an increase in tax revenue and a decrease in tax revenue for others. But again, the second stimulus check would lead to a temporary increase in tax revenue, as people would spend as long as they have the money to spend. To fix this issue, there is a need for permanent solutions, especially for those states who saw a decrease, and therefore they need to have some expansionary policies to gain consumer confidence and get their tax revenue increased.
It is interesting to how various different states respond to the various increases and decreases. The second round of stimulus checks will affect every state differently as various states has different levels of consumer spending. There could be expected solutions of how to combat the decreases in consumer spending from either a federal perspective or at the sate level. In conclusion each individual state will respond differently to their respective increases or decreases.
Post a Comment