States expect to gather higher tax income in the approaching budget year that together would top pre-recession levels, according to a study released Tuesday.
The increase could reduce strain on states to slice budgets and lay off employees.
A slowly healing employment marketplace and slight economic expansion have increased sales and income taxes, which provide approximately three-quarters of state income. Corporate earnings taxes are also bolstering.
Total state tax income is predicted to rise 4.1% to $690 billion dollars in the 2013 budget year, according to a twice-yearly survey by the National Association of State Budget Officers and the National Governors Association.
It is the 3rd year in a row of monetary expansion and $10 billion more than the budget year that finished in June 2008. The recession commenced in December 2007.
Total state spending will bolster by only 2.2% and stay below pre-recession levels, the report stated.
Approximately one quarter of the anticipated gain in state revenue is on account of suggested tax increases in ten states. Fifteen states advocated tax cuts, though not sufficient to offset the suggested gains.
Layoffs are decreasing at the state level. State governments added a median average of nearly three thousand new jobs monthly for the past six months, after cutting nearly 5,200 the previous six months.
While state economies are feeling benefits from taxes, many U.S. citizens are facing tax issues. If you need help solving your IRS problems, contact JG Tax Group today. Our knowledgeable staff has over 120 years of combined IRS experience and will be happy to evaluate your situation and inform you of your rights as a taxpayer.
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