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.
Koonce is the Chief Claims Officer, for Sedgwick. In this role, Koonce is responsible for product development and innovation, industry analysis and thought leadership, best practices and compliance standards, legislative and regulatory relationships, and continued involvement in client programs for Sedgwick's lines of business.
Prior to his current role, Koonce was the Managing Director responsible for Sedgwick's casualty retail business unit in which he oversaw program results and service execution across the company's retail customer base. This included use of innovation and technology to improve client outcomes and customer experience.
Prior to joining Sedgwick, Koonce was senior director of risk management for Walmart Stores, Inc., the nation's largest private sector employer. In this role, he managed the retailer's domestic property and casualty claims program. He simultaneously served as president of Claims Management, Inc., Walmart's wholly owned third party administrator.
David Schwartz is the president and CEO of the Financial International Business
Association, or FIBA, where he promotes growth and advancement in international
banking and finance through education, advocacy and networking. With extensive
experience in international banking and compliance, David has held leadership roles at
institutions like Regions Financial Corporation and Banque Sudameris. Fluent in
multiple languages, he holds a Juris Doctorate from New York Law School and a black
belt in Shuri-Ryu Karate. He also serves on various community boards and actively
contributes to educational and health organizations in South Florida.
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.