Bloomberg: American States Once Awash In Cash See Their Fortunes Suddenly Reversed
California is an extreme case of a state that relies heavily on its richest residents for its tax base. But it’s not alone: revenue in 16 other states is down this fiscal year through April, according to the Urban Institute, partly reflecting the volatility in markets and population shifts. Over in Florida and Texas — red states where levies are primarily collected through sales rather than income — it’s a different picture. While the pace of tax collections has slowed, they are among about a dozen states seeing revenue grow 5% or more this year as consumers keep spending.
“You’re starting to see this divergence,” said Emily Mandel, an economist at Moody’s Analytics. “It’s definitely something we’re seeing in the data.”
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