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Speaking of the different business models of each of the 50 states, those business models finally seem to be functioning a little better: state taxes rose modestly in the second quarter. They are still below their prerecession levels, however.
Preliminary tax collection numbers released today by the Rockefeller Institute show that overall state tax revenues grew 2.2 percent in the second quarter of 2010, compared with same period a year earlier. This was the second consecutive quarter of overall year-over-year growth.
During the first half of this year, the growth in tax revenues was driven by an increase in both sales taxes and personal income taxes. For four consecutive quarters, though, corporate income tax revenues have fallen, must recently by 18.8 percent on a year-over-year basis.
And even the positive growth in personal income taxes was nothing to write home about, as it was largely because of a legislated tax increase in California.