US states forecast highest tax revenue in 5 years
{{#rendered}} {{/rendered}}U.S. states expect to collect higher tax revenues in the coming budget year that combined would top pre-recession levels, according to a survey. The increase could reduce pressure on states to cut budgets and lay off workers.
Tax revenue is forecast to rise 4.1 percent to $690.3 billion in the 2013 budget year, according to a twice-yearly survey by the National Governors Association and the National Association of State Budget Officers. That would be the highest level in five years.
A slowly healing job market and modest growth have boosted sales and income taxes, which provide nearly three-quarters of state revenue. Corporate income taxes are also growing.
{{#rendered}} {{/rendered}}Still, many states continue to struggle. And some states, such as California, are seeing greater revenues only after raising taxes to stem deficits.