e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]It’s April and for many it’s time to think about income taxes. For the Tax Foundation, it is also time for the release of their annual “Facts & Figures” report. This is a publication with 31 tables that rank states by various tax related measures and is sent to every legislator and governor in all 50 states.
Here are some of the key findings for you to ponder as you finalize your own income tax returns.
1. Using figures for fiscal year 2008, the average state/local tax burden in the U.S. was $4,283 per person.
State and Local Tax Burden Per Capita, Fiscal Year 2008
| State | Tax Burden Per Capita (a) | Rank | State | Tax Burden Per Capita (a) | Rank |
| U.S. | $4,823 | --- | Mont | $3,158 | 43 |
| Ala | $3,144 | 44 | Nebr | $3,983 | 19 |
| Alaska | $2,871 | 49 | Nev | $3,245 | 39 |
| Ariz | $3,244 | 40 | NH | $3,642 | 29 |
| Ark | $3,351 | 37 | NJ | $6,610 | 2 |
| Calif | $5,028 | 6 | NM | $3,114 | 46 |
| Colo | $4,359 | 13 | NY | $6,419 | 3 |
| Conn | $7,007 | 1 | NC | $3,663 | 28 |
| Del | $4,253 | 16 | ND | $3,637 | 30 |
| Fla | $3,441 | 36 | Ohio | $4,049 | 18 |
| Ga | $3,735 | 23 | Okla | $3,761 | 22 |
| Hawaii | $4,920 | 7 | Ore | $3,719 | 24 |
| Idaho | $3,670 | 27 | Pa | $4,463 | 11 |
| Ill | $4,346 | 14 | RI | $4,533 | 10 |
| Ind | $3,502 | 34 | SC | $3,127 | 45 |
| Iowa | $3,589 | 31 | SD | $3,079 | 47 |
| Kans | $3,911 | 20 | Tenn | $3,160 | 42 |
| Ky | $3,243 | 41 | Tex | $3,580 | 32 |
| La | $3,286 | 38 | Utah | $3,446 | 35 |
| Maine | $3,835 | 21 | Vt | $4,410 | 12 |
| Md | $5,669 | 4 | Va | $4,669 | 9 |
| Mass | $5,377 | 5 | Wash | $4,334 | 15 |
| Mich | $3,694 | 26 | W.Va | $3,000 | 48 |
| Minn | $4,688 | 8 | Wis | $4,194 | 17 |
| Miss | $2,834 | 50 | Wyo | $3,714 | 25 |
| Mo | $3,508 | 33 | DC | $7,308 | --- |
(a) Fiscal Year 2008 figures are advance estimates calculated in
August, 2008. Data for years 1977 to present are available at www.TaxFoundation.org. Payments made to out-of-state governments are tallied in taxpayer's state of residence where possible.
2. Nationwide, the state/local tax burden averaged 9.7% of income in fiscal year 2008.
State and Local Tax Burden as a Percentage of State Income, Fiscal Year 2008
| State | Tax Burden Per Capita (a) | Rank | State | Tax Burden per Capita (a) | Rank |
| U.S. | 9.7% | --- | Mont | 8.6% | 40 |
| Ala | 8.6% | 38 | Nebr | 9.8% | 17 |
| Alaska | 6.4% | 50 | Nev | 6.6% | 49 |
| Ariz | 8.5% | 41 | NH | 7.6% | 46 |
| Ark | 10.0% | 14 | NJ | 11.8% | 1 |
| Calif | 10.5% | 6 | NM | 8.6% | 39 |
| Colo | 9.0% | 34 | NY | 11.7% | 2 |
| Conn | 11.1% | 3 | NC | 9.8% | 20 |
| Del | 9.5% | 24 | ND | 9.2% | 33 |
| Fla | 7.4% | 47 | Ohio | 10.4% | 7 |
| Ga | 9.9% | 16 | Okla | 9.8% | 19 |
| Hawaii | 10.6% | 5 | Ore | 9.4% | 26 |
| Idaho | 10.1% | 13 | Pa | 10.2% | 11 |
| Ill | 9.3% | 30 | RI | 10.2% | 10 |
| Ind | 9.4% | 28 | SC | 8.8% | 37 |
| Iowa | 9.3% | 31 | SD | 7.9% | 45 |
| Kans | 9.6% | 21 | Tenn | 8.3% | 44 |
| Ky | 9.4% | 25 | Tex | 8.4% | 43 |
| La | 8.4% | 42 | Utah | 9.6% | 22 |
| Maine | 10.0% | 15 | Vt | 10.3% | 8 |
| Md | 10.8% | 4 | Va | 9.8% | 18 |
| Mass | 9.5% | 23 | Wash | 8.9% | 35 |
| Mich | 9.4% | 27 | W. Va | 9.3% | 29 |
| Minn | 10.2% | 12 | Wis | 10.2% | 9 |
| Miss | 8.9% | 36 | Wyo | 7.0% | 48 |
| Mo | 9.2% | 32 | DC | 10.3% | --- |
Note: Fiscal Year 2008 figures are advance estimates calculated in
August, 2008. Data for years 1977 to present are available at www.TaxFoundation.org. Payments made to out-of-state governments are tallied in taxpayer's state of residence where possible.
3. The Foundation’s Business Tax Climate attempts to indicate how state/local taxes affect state economic performance.
| Ranking on Five Major Subindices | ||||||
| State | Overall Index Rank | Corp. Tax Index | Ind. Income Tax Index | Sales Tax Index | Unemp. Ins. Tax Index | Prop. Tax Index |
| Ala | 19 | 23 | 17 | 25 | 16 | 17 |
| Alaska | 3 | 26 | 1 | 5 | 29 | 15 |
| Ariz | 28 | 22 | 23 | 46 | 2 | 4 |
| Ark | 40 | 39 | 34 | 43 | 17 | 20 |
| Calif | 48 | 34 | 48 | 48 | 14 | 13 |
| Colo | 13 | 12 | 16 | 31 | 20 | 6 |
| Conn | 38 | 18 | 24 | 27 | 34 | 48 |
| Del | 8 | 49 | 35 | 1 | 13 | 7 |
| Fla | 5 | 15 | 1 | 32 | 3 | 22 |
| Ga | 29 | 8 | 30 | 23 | 22 | 36 |
| Hawaii | 24 | 10 | 44 | 11 | 12 | 8 |
| Idaho | 18 | 17 | 29 | 12 | 48 | 3 |
| Ill | 30 | 27 | 10 | 41 | 46 | 39 |
| Ind | 12 | 21 | 11 | 20 | 11 | 12 |
| Iowa | 46 | 45 | 42 | 33 | 33 | 31 |
| Kans | 32 | 40 | 21 | 24 | 6 | 32 |
| Ky | 20 | 42 | 32 | 7 | 36 | 19 |
| La | 35 | 19 | 25 | 47 | 8 | 24 |
| Maine | 34 | 43 | 40 | 6 | 40 | 41 |
| Md | 45 | 14 | 49 | 10 | 37 | 38 |
| Mass | 36 | 47 | 14 | 26 | 49 | 45 |
| Mich | 17 | 48 | 15 | 9 | 45 | 33 |
| Minn | 43 | 44 | 37 | 40 | 38 | 16 |
| Miss | 21 | 13 | 18 | 35 | 4 | 23 |
| Mo | 16 | 5 | 27 | 16 | 7 | 18 |
| Mont | 6 | 16 | 22 | 3 | 21 | 10 |
| Nebr | 33 | 35 | 31 | 17 | 15 | 34 |
| Nev | 4 | 3 | 1 | 44 | 42 | 14 |
| NH | 7 | 50 | 9 | 2 | 39 | 40 |
| NJ | 50 | 41 | 47 | 38 | 25 | 50 |
| NM | 23 | 32 | 19 | 42 | 19 | 1 |
| NY | 49 | 20 | 50 | 36 | 47 | 43 |
| NC | 39 | 25 | 36 | 34 | 5 | 37 |
| ND | 25 | 30 | 33 | 21 | 28 | 5 |
| Ohio | 47 | 38 | 46 | 37 | 10 | 49 |
| Okla | 31 | 7 | 26 | 45 | 1 | 27 |
| Ore | 14 | 31 | 45 | 4 | 30 | 9 |
| Pa | 27 | 37 | 13 | 29 | 41 | 42 |
| RI | 44 | 36 | 38 | 13 | 50 | 47 |
| SC | 26 | 9 | 28 | 18 | 43 | 26 |
| SD | 1 | 1 | 1 | 30 | 35 | 11 |
| Tenn | 22 | 11 | 8 | 49 | 32 | 46 |
| Tex | 11 | 46 | 7 | 39 | 9 | 30 |
| Utah | 10 | 6 | 12 | 28 | 24 | 2 |
| Vt | 41 | 28 | 41 | 14 | 18 | 44 |
| Va | 15 | 4 | 20 | 8 | 44 | 29 |
| Wash | 9 | 33 | 1 | 50 | 26 | 21 |
| W.Va | 37 | 24 | 39 | 22 | 31 | 28 |
| Wis | 42 | 29 | 43 | 19 | 23 | 25 |
| Wyo | 2 | 1 | 1 | 15 | 27 | 35 |
Californians understand and accept that they live in a state with relatively high taxes. However, the State’s low ranking on the Business Tax Climate Index is troubling. Business firms inside and outside the state often take such tax factors into account when making decisions about whether to expand in California. (Nancy D. Sidhu)
Source: www.TaxFoundation.org
Nine months into the 2009/2010 fiscal year, California’s reported budget position continued to deteriorate in March. While total revenues were up compared to the same period last year, they still fell short of disbursements by -$10.7 billion. The State’s cash balance now stands at -$22.6 billion. The latest financial results released by the State Controller for the General Fund show that during the first nine months of FY 2009-2010, total receipts increased by +2.0% to $60.2 billion (up by +1.2 billion compared with the same period last year). Total disbursements fell – dropping by -$8.9 billion to $71.0 billion (or by -11.1% on a year-over-year basis). To give Sacramento some credit, over the past three months, actual revenues were greater than estimated in the revised budget and disbursements were somewhat less.
Looking at the “big three” revenue sources, corporate tax receipts declined by -3.6% to $5.8 billion (compared with March 2009 fiscal year-to-date) while revenues from retail sales and use taxes jumped by +11.8% to $19.7 billion. Stubborn statewide high unemployment (holding steady at 12.5% in February) continued to erode personal income tax receipts (the single largest contributor to state revenues). In March, personal income taxes fell by -3.2% to $29.3 billion compared to the same period last year. Overall, collections for the “big three” revenue sources edged up by +1.6% during the first nine months of the fiscal year.
On the expenditure side, Local K-12 Education received $24.7 billion during July 2009 – March 2010, a decrease of -$1.7 billion (-6.5%) from the same period last year. Community Colleges received $3.1 billion, a decrease of -$115.0 million (-3.6%) over the prior year. The UC/CSU systems continued to struggle – funding for California’s university systems plummeted by -58.9% this year to $2.0 billion. Contributions to CALSTRS (the teachers’ pension fund) were up for the year – rising by +13.3% to $793.3 million (note: no contributions were recorded for the months ofFebruary and March).
Spending for the Department of Corrections fell again last month to $6.4 billion (-13.4%) compared with $7.3 billion during the previous year. Spending on Health and Human Services contracted sharply, tumbling by -15.4% to $1.4 billion. Payments to Legislative/Judicial/Executive slipped by -4.1% to $1.1 billion compared with last year, while spending on General Government rose by +10.0% to $1.2 billion.
As of the end of March, the State had $28.4 billion in borrowable resources against $22.6 billion in outstanding loans, which left just $5.8 billion in unused borrowable resources. The outstanding loan balance of $22.6 billion is comprised of $13.8 billion of internal borrowing and $8.8 billion of external borrowing (short-term revenue anticipation notes). Of the total, $11.9 billion was carried forward from the previous fiscal year, with the remaining $10.7 billion debt accumulated in the current fiscal year. (Kimberly Ritter)
PR: http://www.sco.ca.gov/eo_pressrel.html
FilmL.A.’s first quarter 2010 report on off-studio lot film production contained a lot of good news. According to the agency, total permitted production days in Los Angeles County were up by +17.8% over the comparable 2009 period.
Setting the pace were commercials, which recorded a +60.7% increase in location production days over the year. FilmL.A. noted that there was a significant rebound in auto commercial production, with 66 shot in the area this year compared with 35 during the first quarter of 2009. Location production of TV was up by +14.1% over the year, with the gain sparked by TV pilots and reality TV shows.
Location production of feature films was up by +0.9%, bolstered by the California Film and Television Tax Credit program. FilmL.A. counted 11 feature film projects shot on location in the area that utilized the state incentive program.
This report correlates with recent employment data for Los Angeles County which reported that employment in motion picture & sound recording industries during the first two months of 2010 was up by +12,000 jobs over the comparable months of 2009. (Jack Kyser)
In February, consumer credit fell, wiping out January’s slight uptick (the first after a string of eleven consecutive monthly declines). Last month, total consumer credit fell by -5.6% after rising by +5.2% in January. Revolving credit declined at an annual rate of -13.1% in contrast to January’s +2.1% increase. Nonrevolving credit dipped by -1.6% after climbing by +6.9% in the previous month. By dollar volume, total consumer credit contracted by -$11.5 billion over the month (seasonally adjusted) after rising by +$5.0 billion in January.
Revolving debt, including balances owed on store charge accounts and bank credit cards, declined by -$9.5 billion in February (-13.1%). February marked the thirteenth consecutive monthly decline for revolving consumer debt. Over the past year, revolving debt has slumped by -9.0.
Non-revolving debt, including auto loans fell by -1.6% or -$2.0 billion in February. Over the past 12 months, non-revolving debt declined by -1.2%. A year ago, non-revolving debt was still growing by +1.4%.
Over the past year, total consumer credit outstanding fell by -4.2% or -$103.5 billion. Total consumer credit has plunged by -$133.7 billion from its peak in July 2008. January’s jump came as a surprise, but February’s return to the declining trend of the past year is consistent with households’ continuing efforts to shed debt and rebuild retirement accounts. (Kimberly Ritter)
PR: http://www.federalreserve.gov/releases/g19/Current/
World Trade: The World Trade Organization (WTO) officially forecasted that world trade volumes should expand by +9.5% in 2010 after declining by over -12% in 2009. Exports from developing nations are expected to grow by +7.5%, while exports from the rest of the world are projected to rise by +11% in 2010. However, economists at the WTO do not expect world trade volumes to match 2008 peaks until at least another year. The sharp fall in world trade volumes in 2009 were primarily caused by the dramatic decline in global demand. In fact, the total value of merchandise exports plunged by -23% in 2009. The rebound in world trade is expected to lead the global economic recovery in 2010.
Europe: The European Union’s statistics office announced last week that the 16-nation euro region’s economy remained unchanged in the fourth quarter of 2009. Fourth quarter growth was stagnant in most areas as household consumption (unchanged) and government spending (declined by 0.1%) clearly demonstrated this trend. Preliminary expectations from the IMF are for the Euro-area to only grow by nearly +1% in 2010. The Euro-area economy is expected to be the laggard in the global economy while Asia leads the way in 2010. (Ferdinando Guerra)
April 19-20, 2010: USC Marshall School of Business: Asia/Pacific Business Outlook 2010
USC - Davidson Conference Center (on Campus), 3415 S. Figueroa St., Los Angeles, CA
As the world economies slowly rebound from the financial crisis in 2010, Asian economic growth leads the globe. Learn how your firm can benefit from Asia’s surge. Now in its 23rd year, APBO is North America’s premier event for business leaders who want to expand their trade and investment in Asia/Pacific. APBO features 60 concurrent sessions on 15 Asia/Pacific economies. Build your international business network through APBO’s unprecedented access to 60 business experts with on-the-ground knowledge and experience.
Thursday, April 22, 2010: Earth Day Panel: How will Greenhouse Gas Regulations Impact Small Businesses in California?
11:30 – 1:30 p.m. at the Omni Hotel, 251 South Olive St., Los Angeles, CA; $45.00 LA NABE members, $65.00 for non-members; includes program and lunch.
The event will feature Jasmin Anwar, Ph.D., Western States Climate Economist, Union of Concerned Scientists and Gregory Freeman, Vice President Economic & Policy Consulting, LAEDC presenting their views on how AB 32 will impact small businesses in California and the State’s economy overall.
Thursday, April 22, 2010: CALED Recovery Summit: Here's the Money: Access tools and stimulus $$$ for recovery
9 a.m. - 5 p.m. Hilton Long Beach (701 W Ocean Blvd.). $125 Member. $145 Non-Member. $50 CALED 30th Anniversary Dinner - (April 21).
Many of you have shared the challenges that you are facing related to funding and support for your economic development priorities. In direct response to this urgent need CALED will hold a one-day summit focused on programs with funds to support economic development. Rest assured that the summit will deliver the networking, learning, and sharing opportunities that you have grown to expect of our conference. However, there will also be a strong focus on available funding and tools for economic development and job retention & creation. This is a critical juncture for many communities and economic development programs across California, and we have a line-up of knowledgeable speakers who will share their programs and funding availability with our attendees. Additional No Cost Functions: EDC - Creating a Sustainable EDC Model (April 21) and Revolving Loan Fund Operator's Facilitated Workshop (April 23).
Wednesday, May 12, 2010: International Trade Outlook: L.A. County's Global Economic Ties
Breakfast & Networking: 8:00 a.m. - 9:00 a.m. Program: 9:00 a.m. - 10:30 a.m. At Hilton Long Beach & Executive Meeting Center, Catalina Ballroom (701 West Ocean Boulevard).
Los Angeles County has one of the world’s largest and most dynamic economies, thanks in part to its strong economic ties with nations from around the globe. In the first of an upcoming series of Key Country reports, the Kyser Center for Economic Research will release a special report on China, L.A. County’s largest trading partner. The report which will feature trade connections between China and L.A. County, investments that local companies have made in China, the educational and cultural ties between the two regions, and the challenges and opportunities that lie ahead. Additionally, the LAEDC will present its annual International Trade Trends & Impacts report highlighting the trade activity for the Southern California 5-county region.
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