State, Local Tax Revenues Decline 7%

Wall Street Journal ^ | December 30, 2009 | CONOR DOUGHERTY

[detective]

State and local tax revenues fell 7% in the third quarter of 2009 from a year ago, the Census Bureau said in a report underscoring how the economic downturn is stressing government collections.

Sales taxes declined 9% to $70 billion in the third quarter compared with the year-ago period, the Census Bureau said. Income taxes plunged 12% to about $58 billion. Together, sales and income taxes make up roughly half of state and local tax revenue.

[detective]

Sales taxes declined 9%. The Commerce Department data for the 3rd Quarter showing "the recession was over" started at 3.5% growth and then was revised downward to 2.8% and then 2.2%. The sole reason for this supposed economic growth was an increase in consumer spending. The "cash for clunkers" program was cited as the reason. It is now clear that consumer spending actually decreased in the 3rd quarter despite the cash for clunkers program. The economy is worse than the government and the MSM are reporting.

[E. Pluribus Unum]

All this means is that the government swells need to extract 7% more from the people who still have jobs and the companies that are not yet bankrupt.

Government can never do with less. That's the job of the peasants.

[lurk]

The solution is obvious: spend more money.

[BP2]

Starve the beast — at the local, state and federal level!

[Roccus]

WV Governor Manchin(D) just ordered all state agencies to cut 3.4% from their budgets.

[AdaGray]

Just had a bumper sticker made up and today I put it on my car: “Don’t Tax. Don’t Borrower. SLASH”

There is no way around it.