The expansion of state Medicaid programs has pushed the nation’s public welfare expenditures up 4.9%, from $519.2 billion in 2013 to $544.6 billion in 2014, according to the U.S. Census Bureau’s Annual Survey of State Government Finances. Hawaii (23.2%), Oregon (22.1%), Kentucky (17.9%) and Washington (16.7%) led all states. Each of these states, along with several others, expanded their Medicaid programs in 2014, contributing greatly to the overall national increase.
Not surprisingly given the scandalous manipulation of the tax codes by the rich, overall general state government revenues rose 1.8% from $1.71 trillion in 2013 to $1.74 trillion in 2014, while general expenditures rose 2.6%, from $1.68 trillion to $1.73 trillion. How do you spell DEFICIT?
The largest increase in state general revenues came from regressive general sales taxes and other taxes (severance, inheritance and stock transfer taxes), both of which were up 6.5%. Overall, tax revenue totaled $865.8 billion, up 2.2% from the 2013 total of $847.1 billion and 8.4% from 2012, when it totaled $798.6 billion. Federal grants accounted for nearly one-third (30.8%) of all state government general revenue in 2014, up from 30.0% in 2013.
“Corporate income taxes declined by $21 billion (or 11%). About half of the decline occurred between October and March, when firms paid taxes that were largely on their taxable profits in the 2015 tax year. The other half of the decline occurred in April and May, when most firms began paying taxes on their taxable profits in 2016.
Part of the decline in receipts in the past two months probably stems from the enactment in December of the Consolidated Appropriations Act, 2016 (Public Law 114-113), which extended—retroactively and prospectively—tax rules that allow businesses with large amounts of investment to accelerate their deductions for that investment.”