According to a study released recently by The Pew Charitable Trusts, Alabama’s state tax revenues have finally risen above its pre-recession peak.
The Yellowhammer State joined South Carolina and Arizona with meeting that milestone for the first time in the third quarter of 2018. Alabama’s Q3 tax revenues last year were o.6 percent higher than its pre-recession high in 2008.
Pew, a non-partisan, nationally respected group, also gave credit to President Donald Trump’s signature tax cuts for giving places like Alabama a needed shot in the arm when it came to their state tax revenues.
“Revenue collections have been boosted in part by the 2017 federal Tax Cuts and Jobs Act—which changed what many individuals and businesses owed to state tax collectors—and by favorable economic conditions, robust stock market returns in late 2017 through much of 2018, and state policy actions,” the study advised.
Now, 41 states have surpassed their pre-recession revenue collection peaks. Pew noted that recovery “trends have varied widely by state” but that overall tax revenues have rebounded more slowly after the Great Recession than at any point in American history.
Read more here.
Sean Ross is a staff writer for Yellowhammer News. You can follow him on Twitter @sean_yhn
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