Census: State, local government tax collection hit all-time high

HARRISBURG — Local and state governments are collecting more tax money from individuals and businesses than ever.

The U.S. Census Bureau released Wednesday its State and Local Government Finance Summary, examining fiscal 2011 numbers. State and local governments collected a record-breaking $3.4 trillion in revenue from all sources that year.

From that figure, $2.6 trillion is considered “general revenue,” which includes a record-high$1.3 trillion in tax collections.

BREAKING IT DOWN: This chart breaks down where state and local governments got their $2.6 trillion worth of revenue in 2011.

According to the census report, several of these indicators are signs of improvement for state and local government finance, in other words, more evidence of a slowly recovering economy.

It also means more money from taxpayers — individual income tax revenue collections went up by 9.5 percent to $284 billion in 2011. Corporate income taxes increased 10.7 percent, to $48.5 billion.

“Tax revenue increased in 2011 for the first time in 2 years, led by gains in sales and gross receipt taxes and individual income taxes,” the report noted. “Additionally, unemployment compensation declined for the first time in 4 years.”

The overall revenue boost also came from gains in insurance trust revenue, which includes pension funds and programs such as unemployment compensation and Social Security. That revenue grew by nearly 30 percent, from $512.8 billion in 2010 to $663.6 billion in 2011, marking a second straight year of increases.

Via:Watchdog.org

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How Detroit Almost Killed My Business

Of all the depressing facts about the once great City of Detroit, this to me is the most upsetting:  In 1950, there were about 296,000 manufacturing jobs in Detroit.  Today, there are less than 27,000 (Hat tip Zero Hedge Blog).

Government -- federal, state, and local -- made this happen. I know this from experience. Government corrupted the Detroit work force. That corruption drove away my company too.

Until 1984, I was a business owner in the city, employing about 20.  I moved my business 60 miles away.  I didn't want to leave, but I was, in effect, forced to. 

Many think that crime spurred the exodus of business out of Detroit.  Not in my case.  To combat crime we would build a stronger "fort." We called it "fort building" because if my neighbor put heavy wire screen on his windows, the thieves would break into my shop.  If I bricked up my windows in response, my neighbor might be broken into.  This escalated to the point where many businesses eventually put fencing topped with barbed wire around their buildings.  Still, although "fort building" was expensive, it was far cheaper than moving. 

Detroit's abysmal educational system did not drive me away either. As it happens, my particular business did not require highly educated people. So I could hire high school graduates not literate enough to fill out an application form.

Via: American Thinker

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