This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

US States Forecast Highest Tax Revenue In 5 Years

Others states are seeing less improvement. Iowa, Illinois and Arkansas are among those forecasting small increases.

And even though California is forecasting much higher revenue, much of that is coming from a tax increase. The state is struggling to close a $16 billion budget deficit and is considering cutting programs.

So are many other states. Aid from the federal government is dropping and demand for health care, education and other services is rising.

About a quarter of the expected gain in revenue comes from proposed tax hikes in 10 states. Fifteen states recommended tax cuts, though not enough to offset the proposed gains.

The gains in revenue are also uneven. Tax receipts in 23 states are projected to remain lower than they were five years ago. The forecasts are based on proposed budgets submitted by governors.

The issue of state and local government job cuts inflamed the presidential campaign last week. President Barack Obama on Friday urged Republicans in Congress to approve legislation he has proposed that would enable more teachers and police officers to keep their jobs.

The president also asserted that the "private sector is doing fine," which drew quick, derisive criticism from Republicans. Mitt Romney, GOP presidential nominee, charged that Obama was "out of touch."

Layoffs are slowing at the state level. State governments added an average of 3,000 jobs a month in the past six months, after cutting an average of 5,200 in the preceding six months. Still, the cuts aren't entirely over: states cut 5,000 jobs in May.

The biggest layoffs have been at the local level, particularly in public schools. Local governments rely on property taxes, which are still declining as property values fall in the wake of the housing bust.

Since August 2008, when state and local government employment peaked, local governments have cut 528,000 jobs. State governments have shed 134,000.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs