Job gains boost state tax revenue for 2nd straight year, helping lawmakers narrow budget gaps

[alp227]

Source: Associated Press

WASHINGTON — The best hiring stretch in five years is helping governors and legislators narrow state budget gaps after two of the toughest years in decades, according to a report to be released Thursday.

The National Governors Association and National Association of State Budget Officers say tax revenue will increase 2.1 percent to $655.6 billion in the next budget year, which for most states begins on July 1. That would follow a projected 5.9 percent increase for the 2011 budget year.

A big reason for the gains is that job growth is providing states with more income tax revenue, which accounts for 40 percent of state revenue. Companies have added 1.7 million jobs in the past year. More than 750,000 of those jobs were added in February, March and April. Many states are also raising tax rates and fees.

Tax revenues had plunged in budget years 2009 and 2010, the first back-to-back decline on records dating back to the 1970s. The recession sent unemployment soaring, cutting into income and sales tax receipts.

Read more: http://www.washingtonpost.com/business/job-gains-boost-state-tax-revenue-for-2nd-straight-year-helping-lawmakers-narrow-budget-gaps/2011/06/02/AGn9CqGH_story.html

[ejpoeta]

1. guess that means more tax cuts!

:sarcasm:

[liberal N proud]

2. It is still not evident to these thugs that JOBS make the world go round

Without jobs creation, nothing will ever improve.