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.
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Many small business owners will save money thanks to new healthcare legislation
Healthcare legislation will positively benefit small businesses in many states, thanks to advantageous tax credits.
In Colorado, 83 percent of small businesses will receive tax credits when it comes to healthcare, according to the Denver Business Journal. Despite the vast majority of businesses receiving some kind of benefit, only 25 percent of small businesses will get the maximum tax credit.
“Many small businesses – like the local diner, the hardware store down the street or the neighborhood repair shop – face special challenges in providing health coverage for their small number of employees,” said Ron Pollack, executive director of Families USA. “They will now receive substantial help.”
In Utah, more than 85 percent of businesses with fewer than 25 people will qualify for a federal tax credit in order to help pay for healthcare, the Salt Lake Tribune reports.
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