Bloomberg: Virus Surge Hits Budgets of States Most Vulnerable to Shutdowns
media mentionAs the two states have each surpassed nearly 600,000 confirmed cases combined, with daily new cases in the tens of thousands, governors in Florida and Texas are considering scaling back their economies amid enormous pressure. Their initial hesitancy to shut down may have fueled the recent surges according to some reports. Yet, experts say that approach has actually helped Florida and Texas—which rely on sales taxes for 63% and 60% of total collections respectively—generate much-needed revenue during a time when virtually every state budget is bleeding.
“States without income taxes like Florida are so dependent on tourism as part of their economy, I think that’s part of what drove policymakers to reopen these states early, said Meg Wiehe, deputy executive director at the Institute on Taxation and Economic Policy.