Monday, May 9, 2011
Politicians don't want to tell you, so we will: Tax revenues are coming back smartly now that the economy is growing. California recently discovered $2 billion in unexpected tax revenue, even as Governor Jerry Brown promotes a referendum to raise taxes. Connecticut has raised its revenue estimates by $465 million, even as Governor Dannel Malloy signed the largest tax increase in state history last week.
The revenue revival is also helping the federal fisc, with overall receipts rising by $110 billion, or 9.1%, in the first seven months of fiscal 2011. The biggest news is the increase in individual income tax receipts, which rose to $630 billion from $501 billion, or 25.9%, from October through April.