Re: Tax receipts up …
Jordan Hayes wrote:
I’ve been seeing headlines about this over the last few days, but today’s big one was from California: an ‘extra’ $1.5B of tax revenue showed up this month than they were expecting (sort of a drop in the bucket, since Arnold’s recent budget was $125B, but still), and total revenues for the month of April (with a few days left) might be an all-time high.
It’s happening at a lot of states, and the likely causes are bonuses and higher managerial salaries. Growth in wage and salary income in the NIPAs is running far ahead of the proxy for production worker pay (employment * weekly wages * 52). Though conventional measures of “wage inflation” are quite subdued, these other forms of compensation are suggesting shortages of skilled labor.
Doug