Skip to: Content
Skip to: Site Navigation
Skip to: Search
MONDAY, NOVEMBER 23, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


2

Fed Dollars Overtake Taxes as States' Top Income Source

Federal money exceeds revenue from major taxes for first time ever

Share

(Newser) – For the first time, state governments are receiving more money directly from the federal government than they collect in sales, property, and income taxes, reports USA Today. As the economic downturn saps tax revenue, stimulus money has filled the gap. Says an analyst, “This has more to say about the severity of the recession than anything else.”

But eventually, the federal dollars will dry up. States are counting on a tax rebound by 2012, when the stimulus starts to peter out. Conservatives worry that the stimulus just postpones an eventual reckoning. Says an Indiana Republican, “This money isn’t manna from heaven. It comes with a price.”

In this 2008 file photo, Minnesota Gov. Tim Pawlenty addresses the media following the state budget forecast announcement at the State Capitol in St. Paul.
In this 2008 file photo, Minnesota Gov. Tim Pawlenty addresses the media following the state budget forecast announcement at the State Capitol in St. Paul.   (AP Photo)
The Ohio Statehouse is seen in downtown Columbus.
The Ohio Statehouse is seen in downtown Columbus.   (AP Photo)
Calif. Gov. Arnold Schwarzenegger speaks tin San Francisco, March 12, 2009.
Calif. Gov. Arnold Schwarzenegger speaks tin San Francisco, March 12, 2009.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow

These are big numbers. It's put us in a very bad situation. - Nancy Wyman, Connecticut comptroller

« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.23.09
Books Are Bad for You
11.20.09
The Health-Care Wars Have Just Begun
2 comments
VIEWING:
 
AClotfelter
May 5, 09 12:12 PM CDT
We're fucked Reply
Vote up! Vote down!
0
ksu92
May 5, 09 12:15 PM CDT
Well, then all those 'Sons of the Confederacy' governors better give all that filthy Fed money back. Oh, yeah; I forgot they're just rabble-rousing hypocrites whose words are worthless. Reply
Vote up! Vote down!
0
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

11 Stories

Cash-Strapped States Raise Taxes as Revenue Declines

At least 10 states face substantial budget gaps

Apr 9, 09 7:31 AM CDT
(Newser) - A precipitous decline in tax revenue has at least 10 states considering major increases in sales or income taxes to close budget gaps that in some cases run into the billions, the Wall Street Journal reports. States like Oregon, facing a $4.4 billion budget gap and 10.8% unemployment,... More »

MORE ABOUT:
California • taxes • income tax • Arizona • New York • Oregon • unemployment • tax revenue • budget gap • state sales tax • payroll taxes • state budgets

Stimulus Deadline Looms for Skeptical SC Gov. Sanford

As fiscal situation worsens, SC governor's stimulus refusal draws ire

Apr 2, 09 8:43 AM CDT
(Newser) - South Carolina Gov. Mark Sanford has until Friday to choose between the philosophical and the fiscal as the deadline to accept $700 million in federal stimulus money approaches, the Wall Street Journal reports. Sanford wants authority over the funds, earmarked for education and public safety, and has pledged to refuse... More »

MORE ABOUT:
education • South Carolina • unemployment • economic stimulus package • budget shortfall • Mark Sanford • financial crisis • public safety

OPINION

GOP Guvs Right to See Stimulus Cash as 'Trap'

Say law is a 'budget trap' that will hook them on more spending

Feb 23, 09 8:40 AM CST
(Newser) - Five Republican governors are threatening to turn down much of their stimulus windfall, afraid of taking addictive doses of spending on education, welfare, and health care that the states would have to shoulder in 2011 and beyond. And they're right to worry, the Wall Street Journal says. Take enrolling new... More »

MORE ABOUT:
government spending • Rick Perry • Bobby Jindal • Haley Barbour • economic stimulus package • Mark Sanford • state budgets • Republicans

11 Stories


A tax fight coming?
The Hill


Politics  •  US 
TwitterFollow @NewserPolitics on Twitter

 
income tax • economic stimulus package • state sales tax • budget shortfall • property tax • state budgets

from our news partners