The Wall Street Journal reports strong revenue growth for Connecticut in the third quarter of 2010. The report is based on the Census Bureau’s third-quarter statistics on state and local tax revenue issued on December 29, 2010. Bureau statistics show that, nationwide, combined state and local revenue increased by 5.2% in the quarter. In the same quarter of 2009, revenue fell by 5.4%.
The Journal attributes Connecticut’s surge to stock market gains and financial services industry profits, which led to a 13% boost in the state’s personal income tax revenue. Connecticut’s corporation tax revenue was up more than 50% for the quarter. Nevertheless, Connecticut and other states still face big budget gaps as revenue growth starts from a lower base and spending outpaces revenue in most states, as shown in an interactive map that accompanies the article.
