States See $31 Billion of Taxes Disappear Due to Covid Recession

Oct. 13, 2020, 9:58 PM

U.S. states saw their tax revenue drop by about $31 billion, or 6%, from March through August, compared to the same period a year earlier, as the pandemic triggered economic shutdowns across the country, according to a data from 44 states compiled by the Urban Institute.

The scale of the drop appears smaller than expected, relative to the depth of the economic contraction, and comes after several states have reported that their revenue didn’t decline as much as anticipated despite business shutdowns and increased unemployment. In August, when much of the country was reopening, state revenue climbed about 1.1% from ...

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