A closer look at state tax and fee collections show they totaled $15.1 billion in 2010, or 1.2% more than the prior year. The individual income, corporate income, and sales taxes generated $10.9 billion, or more than 70% of state revenues.
Individual income tax collections followed a 7.3% decline in 2009 with a 2.1% drop in 2010. Part of the reason for the smaller decline in 2010 was a new 7.75% tax rate for the state’s highest earners and a reduction in the state’s capital gains exclusion.Sales tax revenues were down 4.3% in 2009 and another 3.4% in 2010, the first two-year decline in at least three decades.
Taxes claimed 30.4% of the state’s total personal income, up from 29.4% in recession-wracked 2009, but still below the 10-year average (32.5%). State taxes were 7.1% of personal income (vs. 7.0% in 2009), while local taxes claimed 4.5% (vs. 4.3% in 2009). Thus, total state and local taxes claimed 11.6% of income, compared to 11.3% in 2009
Of course, "local taxes" are not contingent on income (or profit); they simply are what they are.
The next "TEA Party" battles will be fought at the local level.