• yourjizzx cum
  • Current Issues

    The Congressional Budget Office (CBO) on March 4th announced that for the month of February, revenue receipts at the federal level were around $16 billion higher than receipts from the previous year.  This 18% increase, has been attributed in part to a rise in net corporate receipts of about $7 billion.  The CBO states this increase in corporate tax revenue as "unusually high compared with receipts in the preceding months" [http://www.cbo.gov/ftpdocs/112xx/doc11263/FebruaryMBR.pdf]. .

    Before getting too excited about the rise in revenue from businesses, it is important to note that the CBO also reports that the overall receipt amounts were still 7% lower than the collections at the same time in 2009.  Revenues coming in at the federal level are still down about $65 billion overall for the first quarter of FY2010, even though for the month of February they were higher.

    What does this mean for our state?  Because Michigan gains more revenue from business taxes than other states [http://www.senate.michigan.gov/sfa/main/MichiganTaxPresentation.pdf], this rise in overall revenue should be a good sign for Michigan.  Although tax revenue might not be up in other areas at the federal level, this report would lead one to believe that Michigan's revenue receipts may reflect the same outcome and that out receipts would be increasing as well.

    The Quarterly Revenue Report for the State of Michigan [http://www.house.mi.gov/hfa/PDFs/revfeb10.pdf] given in February by the House Fiscal Agency does in fact report similar findings.  In this report the HFA states that "For first quarter FY 2009-10, business tax collections were above the year-ago first quarter by $12.7 million or 2.1%"

    A 2.1% increase does not sound like much, but an increase in business tax collections means that Michigan businesses are potentially doing better than they were last year at this time.

    The HFA also reports an Economic/Revenue Overview of Michigan's economy.  Here they state that "January 2010 revenue was up about $20 million from the January 2010 consensus estimates.", which is something to appreciate in this economic crisis we are in.

    To go even further, the Research Seminar in Quantitative Economics (RSQE) at the University of Michigan published an Economic Outlook for 2010-2011 for the United States [http://www.rsqe.econ.lsa.umich.edu/Docs/summary.pdf].  The RSQE predicts that "Business capital spending [will accelerate] in the second half of 2010" as well as "The economy [will recover] at a fairly steady pace during 2010 and [then will pick] up a bit during 2011".

    A report published on March 31st showed statistics that the 15 largest states by population forecast a 3.9% gain in tax revenue for Fiscal Year 2011, and predicted that all 50 states on average could be looking at a gain of about 3.5% in revenue receipts.

    The report stated that corporate taxes were up by around $9.1 billion at the end of the 4th quarter. This is an increase of about 3.4%, which is significant after a declining revenue amount of seven of the last nine quarters.

    Revenue Decline Leveling Off: 15 Largest States by Population

    State

    FY08 Revenue

    FY09 Revenue

    FY10 Revenue

    FY11* Revenue

    Change FY 10-11

    California

    $103.00

    $82.80

    $88.10

    $89.30

    1%

    Texas (1)

    41.4

    37.9

    37.3

    40.4

    8%

    New York (2)

    60.9

    60.3

    58.8

    62.2

    6%

    Florida

    24.1

    21

    21

    22.4

    6%

    Illinois (3)

    24.8

    22.6

    21.6

    21.4

    -1%

    Pennsylvania

    27.9

    25.3

    27

    26.2

    -3%

    Ohio

    22.1

    20.9

    19

    19.1

    1%

    Michigan (4)

    20.9

    18.3

    17.4

    17.8

    6%

    Georgia

    17.7

    15.8

    14.7

    15.4

    5%

    North Carolina

    19.6

    17.4

    17.3

    20.6(5)

    6%

    New Jersey

    32.6

    28.9

    27.7

    28.3

    2%

    Virginia

    15.6

    14.3

    13.9

    14.4

    3%

    Washington

    15.7

    14.1

    13.8

    15

    8%

    Arizona

    8.8

    7.7

    7

    7.3

    4%

    Massachusetts

    23.2

    20.6

    21.3

    22


    3%

    *State's projections included in their budget proposals
    (1)Fiscal Year starts Sept.1
    (2)FIscal Year starts Apr. 1
    (3)General Fund
    (4)Fiscal Year starts Oct. 1
    (5)Unrevised from 2009

    [http://www.bloomberg.com/apps/news?pid=20601087&sid=aRl5eJvAf6wI&pos=5]

    Although the high unemployment rate is a concern in Michigan, due to the decrease of income tax revenue, predictions still seem to be optimistic that our economy will improve. The process might be slow, but if business tax receipts continue to grow, thanks to our tax system, Michigan's own economy could see improvements before other states in the nation.

     

    Sources:

    http://www.cbo.gov/ftpdocs/112xx/doc11263/FebruaryMBR.pdf

    http://www.house.mi.gov/hfa/PDFs/revfeb10.pdf

    http://www.house.mi.gov/hfa/briefings/Revenue%202009-10%20final.pdf

    http://www.senate.michigan.gov/sfa/main/MichiganTaxPresentation.pdf

    http://www.taxfoundation.org/taxdata/show/25229.html

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aRl5eJvAf6wI&pos=5

     

     

    Home
    Agriculture
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Commerce & Regulation
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Criminal Justice
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    In The Courts
    Timeline
    Employment
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Great Lakes & Recreation
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Energy and Environment
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Health Care
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    K-12 Education
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Morality and Family
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Political Reform
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Social Services & Seniors
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    State Budget
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Taxes
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Transportation
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline
    Urban Affairs
    Policy Briefs
    Current Issues
    National Context
    Interviews
    Blog
    Most Popular Posts
    Timeline

    About Us

    The Michigan Policy Network is a student-led public education and research program to report and organize news and information about the political process surrounding Michigan state policy issues. It is run out of the Department of Political Science at Michigan State University, with participation by students from the College of Social Science, the College of Communication, and James Madison College. 

    Read more about us...

    Sponsors

    Michigan State University    Department of Political Science 
     College of Communication Arts & Sciences    James Madison College
     College of Social Science    University Outreach and Engagement

     

    The thoughts, opinions, and positions represented herein are solely those of the participating students and in no way represent an official position or policy recommendation of Michigan State University.

    Our sponsors...

    Meet your Policy Fellow: Nicholas Biondolillo

    Nicholas Biondolillo is tax policy correspondent for the Michigan Policy Network. Nicholas is a first-year student in Engineering at Michigan State University.