Uncategorized

States find tax receipts in step with healthy U.S. economy

WASHINGTON – State tax receipts jumped nearly 10 percent last year as a strong national economy increased individual earnings and corporate profits.

Most states showed increases without raising tax rates, meaning the gains were caused primarily by an expanding economy, said Corina Eckl, fiscal program director for the National Conference of State Legislatures.

"It’s absolutely attributable to an improving national economy," Eckl said. "Very few, very modest tax changes happened last year."

Nationally, states collected a total of $649 billion in taxes in the 2005 budget year, which ended in June for most states, according to a report Thursday by the Census Bureau.

That’s $2,192 per person.

The numbers include only taxes collected by states. They do not include federal or local taxes, which can greatly increase a person’s taxes.

California collected the most money, more than $98 billion.

Vermont collected the most per person, $3,600.

South Dakota collected the least overall, at a little more than $1 billion, and the least per person, $1,430.

States get nearly half their tax revenue from sales taxes, which went up 6 percent from 2004 to 2005. Individual income taxes increased by nearly 13 percent, and corporate income taxes shot up 28 percent. However, corporate taxes account for little state revenue, about 6 percent, nationally. (more…)