Preliminary data for the October-December quarter of 2013 show that personal income tax (PIT) growth slowed to 1 percent, down from 5.3 percent in the third quarter, and down from an average of 15.9 percent in the three quarters before that. This appears to be due mostly to the disappearance of temporary factors related to federal tax changes that had artificially propped up personal income tax growth in the prior quarters.
While economic softening may have contributed as well, the sales tax has been resilient, suggesting that the income tax weakening may be driven more by the depressing effects of temporary factors.
The Rockefeller Institute’s compilation of preliminary data shows collections from major tax sources increased by 3.0 percent in nominal terms compared to the fourth quarter of 2013.
Gains were fairly widespread, with 38 states showing an increase in revenues compared to a year earlier. After adjusting for inflation, tax revenues increased by 1.6 percent in the fourth...
In a long-awaited decision, the Kansas Supreme Court on Friday ruled that state lawmakers created “unconstitutional” and “unreasonable wealth-based disparities” by withholding certain state aid payments to public schools.
While the legal battle leading up to the decision has been a four-year slog since the lawsuit’s initial filing in 2010, much of Friday’s ruling boiled down to the court’s interpretation of what is considered equitable and adequate education funding.
While the Supreme Court...
New Jersey taxpayers and lawmakers could learn a lesson on double-dipping from Robert Mahon, a retired school chief who never really quit working.
Mahon has collected $1.7 million in pension checks since he took early retirement in 1995 as superintendent of Ocean Township schools in Monmouth County.
Thanks to a loophole in pension law, retiree Mahon has still been making the rounds on public school payrolls for most of the past 19 years.
Drawing six-figure executive pay on top of his $104,621...