Thursday, June 18, 2009

Report: State Personal Income Tax Cliff Diving

by Bill McBride on 6/18/2009 12:09:00 AM

From the WSJ: State Income-Tax Revenues Sink

State income-tax revenue fell 26% in the first four months of 2009 compared to the same period last year, according to a survey of states by the nonprofit Nelson A. Rockefeller Institute of Government.

The report ... is one of the most up-to-date measures of how deep the recession is digging into Americans' wallets and, consequently, state coffers.
The time span notably includes the April 15 deadline for filing taxes, a critical time for states to collect revenues.
Here is a Draft of State Revenue Report

And a couple of graphs:

State Personal Income Tax Change Click on graph for larger image in new window

The first graph, from the Nelson A. Rockefeller Institute of Government report, compares the first four months of 2009 to the first four months of 2008, and also compares April 2009 to April 2008 for eight regions. Note that the YoY change for April is worse in all regions than the first four month comparison.

Personal Income Tax Year over year change by stateThe second graph is the four month comparison of each state (four states had no data).

California isn't the worst, but the state relies heavily on income taxes.

Arizona is just getting crushed - and the pain is widespread.