US Wealth Gap Putting The Squeeze On State Revenue (AP) - Experts say income inequality is more than just a social issue and its hitting state governments where it hurts most, the balance sheet. A report being released Monday by Standard & Poors finds that a slowdown in state revenue is connected to the widening gap between the wealthiest Americans and everyone else. Income has barely kept pace with inflation for most people other than the affluent and for states, thats not good news. The wealthy often manage to shield much of their income from taxes. And they tend to spend less of it than others, thereby limiting sales tax revenue. The dilemma for states is whether to raise taxes or cut spending. Income inequality isnt the only factor. Online retailers account for a rising chunk of consumer spending while mostly managing to avoid sales taxes. Consumers are spending more on untaxed services, too.
Posted on: Mon, 15 Sep 2014 12:35:09 +0000
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