Tuesday, May 5, 2009

The U. S. Treasury Is Officially The Mother Of Us All

For the first time in American history, the United States Treasury provides a larger share of revenue to the 50 states and their local units of government than any other single revenue source, including sales taxes, property taxes, and state and city income taxes. Overall state and local government revenues are up 1.6% this year, despite a 2.9% drop in total state and local tax collections. The difference came from federal stimulus appropriations.

Sales tax revenues are down because people are shopping less often and spending less when they do, crashing real estate values are driving down property tax revenue, and state and local income tax revenue has fallen dramatically as more and more workers are forced to take pay cuts, or furloughs, or get laid off completely in this economic crisis. States and cities are also sending out staggering income tax refunds to workers laid off during 2008. Does Nero's fiddle even have strings any more?
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