10 Fastest-Growing States

Now that the new Census data has been released, CNN put together a list of the 10 fastest growing states. You might be surprised to see some of the states that made the top 10. You can find a portion of the article below, or check out the full list at CNN Money.com.

Nevada

Population: 2,700,551

Growth rate: 35.1%

Unemployment rate: 14.3%

Nevada was a very sleepy place for nearly a century, with a state population of just over 160,000 in 1950.

Hoover Dam helped change all that, bringing cheap power to Vegas to light all that neon and glitz.

The state's population exploded since then, growing by at least 50% every decade from 1950 through 2000. The recession took a bite out of that growth rate, however. In 2009 the state only swelled by 1%.

Arizona

Population: 6,392,017

Growth rate: 24.6%

Unemployment rate: 9.4%

Arizona's population has nearly quadrupled since 1970, no doubt benefiting from the rise of air conditioning.

The recession, however, has slowed migration to Arizona. Phoenix, for example had a net gain of about 50,000 residents from 2007 to 2008, about half its average during the boom years.

Read more here

22 Cities In Danger of a Double-Dip Recession

Some experts have warned of the potential for a double-dip recession nation wide, while others are still pointing to signs of recovery. However, no one can argue that there are dozens of cities in serious danger of slipping back into a recession. CNN Money put together a list of 22 cities that are at risk, I have included a section of their article below.

A new report from Moody's Economy.com singled out 22 cities that are at risk of slipping back into a recession in as early as three months. To come to this conclusion, the economists considered dwindling progress in employment, housing starts, home prices and industrial production.

The at-risk cities are spread across the country, though more than half of the cities are in the South, and five are concentrated in the Midwest.

"With chances of a national double-dip recession now estimated at about one in four, several metro areas will probably experience their own downturns in the first half of 2011," said economist Andrew Gledhill, author of the report.

Private sector hiring has been tapering off in recent months compared to the start of the year, triggering Moody's to boost its forecast for a national double-dip from a 20% chance to 25% chance.

Read more here

Soda Tax Uncaps a Fight

Soda taxes are becoming more and more popular among state and local governments. However, as this article on WSJ.com explains, the producers and sellers of sodas and sweetened beverages have increased their efforts to campaign against any new taxes. Check out a snippet of their article below, or for more information on soda taxes you can read this article I posted on my blog last month explaining the pros and cons of soda taxes.

Makers and sellers of soda and other sweet drinks have intensified a fight against proposed taxes on their products, as a growing number of cities and states are weighing the measures to help fill depleted coffers.

A soft-drink bottler offered what it called a $10 million good-will-gesture donation for health and recreation programs in Philadelphia, as city officials there considered a proposal for an excise tax to help plug a budget hole and fight obesity. The tax, proposed by Philadelphia's Democratic Mayor Michael Nutter, would amount to two cents an ounce on soda and other sweet drinks.

Industry officials are also considering trying to organize a referendum in Washington State to repeal a three-year excise tax on carbonated beverages of two cents on every 12 ounces.

The moves come as officials in at least 20 cities and states have proposed new taxes or the removal of tax exemptions on non-alcoholic beverages so far this year. The beverage industry has spent millions of dollars since 2009 on lobbying and advertising against proposed taxes, including a federal tax initially proposed as part of the health-care reform bill.

So far, few such taxes have actually been imposed. The final federal health overhaul didn't include a soft-drink tax. And while several state and city legislators initially expressed enthusiasm for new soda taxes, only Washington State has approved a new excise tax on soda thus far, while Colorado removed a sales-tax exemption.

States Face More Cutbacks and Tax Hikes

While some experts assert the United States’s economy is improving, state and local governments are reportedly still facing tax increases, setbacks, and budget problems. According to preliminary reports, state agencies in this country will likely face a combined deficit of at least $51 billion next year, which is significantly higher than many had expected.

"These are the worst numbers we've ever seen in the decades of putting together this report," said Scott Pattison, executive director of the National Association of State Budget Officers. "States have been forced to lay off and furlough employees, raise taxes, drain rainy day funds and sharply cut state spending in ways that impact every part of state government."

The full report, which will be released in December, is jointly compiled by the budget officers' group and the National Governors Association. Fiscal year 2010 started on July 1 in 46 states.

Some $135 billion in federal stimulus funding helped states avoid even more draconian cuts, particularly to health services and education. But it was not enough to put the states back on solid footing.

States typically continue to suffer for two years after a national recession is declared over. Many economists predict that the current downturn ended last quarter, when the gross domestic product grew at a 3.5% annual rate.

Continue reading at CNN.com…

IRS Seeks Comments from Government Agencies at Upcoming Forum

Yesterday the IRS posted a new press release announcing that “the second in a series of public forums will be held on Wednesday, Sept. 2, in Washington, D.C., and feature a panel of federal and state officials, moderated by IRS Commissioner Doug Shulman.”

The panel will include representatives from the Treasury Inspector General for Tax Administration (TIGTA) and the U.S. Government Accountability Office (GAO). Representatives from the states of California, Maryland, Oregon and New York will also participate on the panel.

Shulman announced a far-reaching review of paid preparers on June 4 to produce a comprehensive set of recommendations by the end of this year to boost taxpayer compliance and strengthen industry standards.

“This is the next important step in our open dialogue with interested parties in this effort,” Shulman said. “I’m very pleased with the quality of the feedback we’ve received so far. I’m confident these forums will ensure that all ideas are on the table when it’s time to form our recommendations.”

The forum will convene at 9 a.m. ET in the IRS Headquarters at 1111 Constitution Ave. NW, Washington, DC 20224. Anyone interested in attending should confirm attendance by sending an e-mail message to CL.NPL.Communications@irs.gov.

The first public forum was held on July 30 in Washington, D.C., and featured a panel of consumer groups and another panel of tax professional organizations. A third forum will be held in Chicago on Sept. 30 featuring independent return preparers and software industry representatives.

States: It's Taxes, Taxes and More Taxes

From CNN.com:

Facing mounting budget deficits and seeing few areas left to cut spending, states increasingly are turning to the only option they have left: raising taxes.

Though public officials are loath to do this, particularly during a recession, many governors are increasing personal income taxes, raising corporate income taxes, hiking cigarette and gas taxes, or broadening sales taxes.

Already, 16 states have taken this unpopular step this fiscal year, and another 17 have proposed tax hikes for the coming year, according to the Center on Budget and Policy Priorities, a policy group. In many cases, they are making small increases in specific taxes, rather than imposing a broad rate hike.

"The question isn't whether to raise taxes, it's which taxes to raise," said Linda Bilmes, professor of public finance at Harvard's Kennedy School of Government.

Wealthier residents in Hawaii are now paying higher personal income taxes. The state increased the tax rate to 11% for single filers earning more than $200,000 and couples making more than $400,000, while also raising levies on hotel accommodations and real estate purchases.

Smokers in Rhode Island, meanwhile, now pay the highest state tobacco taxes in the nation, forking over an additional $1 for a total of $3.46 in state levies per pack.

California, where voters Tuesday defeated several budget measures, has already increased sales taxes by one percentage point and state income taxes by a quarter point. Now, Gov. Arnold Schwarzenegger says he has to make even deeper cuts to the state budget to close a $21.3 billion shortfall.

Property-Tax Collections Climb as Home Prices Fall

From USA Today.com:

Property taxes are rising across the USA despite the steepest drop in home values since the Great Depression.

Home values dropped 17% in the third quarter compared with the same period in 2007, reports the S&P/Case-Shiller Home Price Index. At the same time, property tax collections across the USA rose 3.1%, according to the U.S. Bureau of Economic Analysis.

State and local governments are on track to collect more than $400 billion in property taxes this year, the most ever. One reason: Laws in most states that prevent big tax hikes when property values soar also block big tax drops when values sink.

The housing market collapse has caused a recession that's hurt sales and income tax collections.

But property taxes — collected mostly for public schools — have escaped serious damage. As a result, public education is one of the few sectors of the economy still adding jobs.