Improving Economy Seen In Increased State Tax Revenues

Despite the constant drumbeat of pessimism emanating from Dr. Krugman's column (now happily hidden behind the wall of TimesSelect), the NY Times has been forced to report that tax revenues from coast to coast are rising beyond the expectations of State and local budget officials. The improving tax receipts are now being directed back into state programs. This is occurring even in the face of ever increasing state costs for Medicaid.

To state the obvious, tax receipts improve only when wages, employment, business receipts, real estate value and other taxable sectors of the economy are thriving.