Friday, May 02, 2008

Wisconsin Tax Revenues, Q1/08

Mixed Signals:


[Personal Income Tax]: +17.5%

[Corporate Income Tax]: (24.6)%

[Sales Tax]: (0.1)%

[Overall Tax Revenue]: +8.1%

Source: Rockefeller Institute

A lot depends on the timing here--but one COULD conclude that weak Corporate revenues (thus weak Corporate-tax revenues) will precede weaker personal income (thus weaker personal-tax revenues.)

That argument seems to be supported by the decline in sales-tax revenues. While personal income-tax revenues are bolstered by (e.g.) performance bonuses paid after 12/31, the larger picture is seen in the sales-tax weakness.

HT: Calculated Risk

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