“Individual income tax collections for the month increased by 11.5 percent, while gross sales tax collections deposited during November rose a minuscule 0.2 percent. Net sales tax revenue fell by 1.3 percent.
Corporate tax revenues in November increased by $5.1 million.”
There’s what you need to know in a nutshell.
Gross sales tax collections rose only 0.2% in November. Net Sales Tax Revenue fell by 1.3%. That says recession.
In an economy that is based on consumption, consumption must outgrow everything else.
The individual tax collections will soon follow suit as well as corporate tax revenues.
If people are not spending more money, companies do not make as much profit. Companies that do not make as much profit do not need as many employees. Fewer employees means lower income tax collections.
The state of Georgia did pass a Billion dollar transportation tax earlier this year. We have begun to see that impact. Taking a billion dollars out of gross receipts and sending it to the state, rather than to the bottom line of companies and into your banking accounts as savings has a cost.
We will see that cost in full glory shortly. The tax, however, will not be reversed.
What we will see is everything else blamed, from warm weather to cold weather, to the strong dollar to …..
The truth, however, is much simpler. Governments that tax too much destroy their own economic engines.