3Q 2010 Tax Collections up Nationwide

According to tax collection data released yesterday by the U.S. Census, considerable economic gains were made during the third quarter of 2010.

The City Wire.com reports:

Overall state and local tax revenues grew in the third quarter compared to the third quarter of 2009, marking the fourth straight quarter of positive growth. Property tax, general sales tax and individual income tax revenues increased, while corporate income tax revenue declined. The decline in corporate income tax revenue is the third consecutive quarter of decline.

In Arkansas, general sales tax collections at the state level were up 7.8% in the quarter, individual income tax collections were up 3.2%, corporate net income taxes received were up 38.2%, and the severance tax total was up 41.5%.

It’s likely the fourth quarter report will show continued gains for Arkansas. The Arkansas Department of Finance & Administration reported Dec. 2 that year-to-date (July-November) total revenues are $2.198 billion, up 2.4% over the same period in 2009. Year-to-date gross receipts collections — primarily sales and use tax collections — total $891.9 million, up 7.8% above the 2009 period and up 0.9% above forecast.

Oklahoma saw the general sales tax totals up 9.8% in the quarter, individual income tax collections up 3.4%, corporate net income tax up 33.4%, and the severance tax up 26.4%.

During the 2010 third quarter 2010 tax revenues for state and local governments totaled $284.3 billion, up 5.21%, but down compared to the $285.6 billion in the third quarter of 2008.

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Census: 1 in 7 Americans Live in Poverty

Earlier today the U.S. Census Bureau published its annual report on the economic well-being of American households. According to their data, 43.6 million people – or 1 in 7 taxpayers – lived in poverty last year. This represents the highest poverty levels since the 1960’s.

The Washington Post reports:

The poverty rate climbed from 13.2 percent, or 39.8 million people, in 2008.

The share of Americans without health coverage rose from 15.4 percent to 16.7 percent - or 50.7 million people - mostly because of the loss of employer-provided health insurance during the recession. Congress passed a health overhaul this year to address rising numbers of the uninsured, but the main provisions will not take effect until 2014.

The new figures come at a politically sensitive time, just weeks before the Nov. 2 congressional elections, when voters restive about high unemployment and the slow pace of economic improvement will decide whether to keep Democrats in power or turn to Republicans.

The 14.3 percent poverty rate, which covers all ages, was the highest since 1994. Still, it was lower than estimates of many demographers who were bracing for a record gain based on last year's skyrocketing unemployment. Many had predicted a range of 14.7 percent to 15 percent.

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States That Received the Most Federal Funds

The Census Bureau released new data this week regarding the total amount of Federal funding each state received in the 2009 fiscal year. Alaska topped the list once again. The state took about twice as much Federal funding as the national average.

NY Times reports:

Obligations for federal domestic spending rose 16 percent in fiscal year 2009 to $3.2 trillion. That comes out to $10,548 per person living in the United States.

Alaska received nearly twice the national average, taking in $20,351.13 per resident, the most of any American state. The state with the second-highest total in per-capita federal funds received was Virginia, at $19,734.

The District of Columbia, however, received an even higher amount per capita than both those states. The nation’s capital received $83,196.12 per resident, mainly because of salaries and wages paid to the many federal employees who work there.

The state receiving the least federal money per resident was Nevada, which obtained $7,148.49 per capita, followed by Utah with $7,434.65 per capita.

U.S. State Revenue Fell 16% in Fiscal 2008, Census Bureau Says

From Bloomberg.com:

U.S. state government collections fell 16 percent to almost $1.7 trillion in fiscal 2008 from a year earlier, while spending increased 6.2 percent, according to the U.S. Census Bureau.

The biggest drop came in so-called insurance trust revenue, which slid $377.7 billion, or 73 percent, the federal agency reported today. Such funds include public employee retirement systems, unemployment compensation and worker compensation funds, many financed with payroll taxes and other worker contributions, according to the bureau.

Spending exceeded $1.7 trillion for the combined states, according to the report. Education, at $546.8 billion, public welfare, $412.1 billion, and highways, $107.2 billion, consumed almost two-thirds of the outlays, the Census Bureau said. State records showed lottery sales rose 1.8 percent from the previous year, to $77.3 billion.

Eleven states spent more than one-fourth of their total expenditures on public welfare such as health care and assistance to the needy, led by Tennessee at 33 percent, Maine at 31 percent and Rhode Island at 30 percent.