U.S. states saw their tax revenue drop by about $31 billion, or 6 percent, from March through August, compared to the same period a year earlier, as the pandemic triggered economic shutdowns across the country, according to data from 44 states compiled by the Urban Institute.
The scale of the drop appears smaller than expected, relative to the depth of the economic contraction, and comes after several states have reported that their revenue didn’t decline as much as anticipated despite business shutdowns and increased unemployment. In August, when much of the country was reopening, state revenue climbed about 1.1 percent from a year earlier, the Urban Institute found.
Ashley Ettwein is Head of Product at Pepper. Pepper is the leading IoT platform that enables brands, manufacturers, retailers and service providers to deliver smart home solutions to their customers. The customizable, US cloud-based Platform-as-a-Service (PaaS) with real-time video streaming provides a cost-effective and easy way for businesses to quickly launch and monetize products and services. With the addition of Notion smart monitoring (acquired December 2022), Pepper expands their insurance offering providing comprehensive, turn-key smart home programs. For additional information, visit: pepper.me.
As Vice President of Human Resources, Jena is responsible for executing a modern and scalable HR structure within the company. She manages all Human Resources programs, policies, procedures, and services, and her depth and breadth of experience with people and culture, and the application of that knowledge, are incredibly valuable.
Jena joined Central in 2020 as our Director of Organizational Development, focused on leadership development and employee engagement, as well as our employees' mental health and well-being. Before Central, she held the Senior Organization Development Psychologist/Consultant role with the Department of Veterans Affairs.
Jena earned a Bachelor of Science in Psychology from The Ohio State University and a Masters in Psychology and a Doctorate in Clinical Psychology from Indiana State University.
Jessica Bonar is a benefits adviser at Advanced Benefits.
The tax figures come as Republicans in Washington balk at extending aid to states and cities to help cover budget deficits that are expected to continue as the coronavirus weighs on the economy. Experts say that states’ financial outlooks could worsen as the effects of the stimulus bill fade and high unemployment reduces tax bills next year.
The August increase should be viewed with caution since income-tax deadlines were pushed back to July, which could have resulted in some revenue being processed later, according to Lucy Dadayan, senior research associate with the Urban-Brookings Tax Policy Center at the Urban Institute. Personal income-tax collections, which rose 3.8 percent in August, were in some cases supported by backlogged unemployment insurance benefits subject to withholding tax, Dadayan said.
Between March and August, tax revenues fell 6.4 percent year over year, with 36 states reporting declines over that period, the report said. Between March and August, eight states, including Washington and Georgia, reported growth in tax revenue.
“Due to the shifting in timing of tax receipts this past year, it is crucial to view August year-over-year revenue gains and fiscal year to date data with caution,” Dadayan said in the report.