AAF Alert: May 14, 2014

Tax Revenue Down in States

For the first time since the end of the recession, tax revenue declined in several states for the first quarter of 2014. Many analysts suspect that tax changes enacted during the “fiscal cliff” were at least partially to blame. They believe that the changes caused many corporations, money managers and high income earners to report income or sell stock that resulted in tax windfalls in 2013, but declines in 2014.

It is uncertain at this point whether revenues will rebound or stabilize. Long-term shortfalls in tax collections often cause many lawmakers to look for new sources of revenue, including extending the sales tax to advertising and other services.

Clark Rector
Executive Vice President-Government Affairs
American Advertising Federation
Follow me on Twitter @ClarkRector1
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