Tax Revenues Now
Tax revenues at the state and local levels are very strong and show little sign of weakening. Growth has been uninterrupted since 2010 — a period during which total tax revenues at the state and local level grew some $500 billion to over $1.8 trillion as of the first quarter of 2019 — per the Federal Reserve Bank of St. Louis.
Federal tax receipts dropped sharply in 2018, but that would appear to be driven primarily by the massive tax cut passed by President Donald Trump’s administration and the Republican Congress than any sort of decline in economic activity.
