State Tax $$$ Magically Disappearing in June...just wait for July
From Mish's Blog and now effecting Washington State(a non housing bubble state):
Gov. Chris Gregoire did Monday what families and businesses have been doing for months: She ordered cuts in travel and buying gasoline, a hiring freeze and a lid on major purchases for most state agencies.
The effort is expected to save $90 million, making up for an unexpected $60 million drop in revenue in June. The lost income came from a slowdown in the housing market and lower business taxes than expected.
There was a dramatic slowdown of revenues to states in June from tax collections. My guess is that July is likely worse. The fact that the Governor of Washington is already taking very significant steps seems to support rapidly deteriorating collections.
A number of companies have also indicated similar observations. Two department store chains declared bankruptcy in the past week. Priceline reports tonight that airlines are making significant capacity cuts this fall further slowing hotel and T&E revenues going forward.
At the end of the day...revenues will have to come from somewhere or more cuts will be forthcoming....just what America needs falling into a recession.