Virginia Posts 0.8% Revenue Increase in December

 (Photo credit: Wikipedia)

RICHMOND - Governor Bob McDonnell announced today that December 2013 revenue collections increased by 0.8 percent from December of 2012. On a year-to-date basis, total revenue collections rose 0.7 percent through December, lagging the annual forecast of 1.7 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session's historic transportation bill, total revenues grew 1.7 percent through December, trailing the adjusted forecast of 2.9 percent growth.

The increase in December revenue was driven by solid growth in collections of individual withholding and nonwitholding partially offset by an increase in refunds and declines in sales, corporate income tax, and recordation taxes.  Individual withholding rose 3.1 percent. Year-to-date collections of individual nonwithholding through the first half of the fiscal year rose by 12.4 percent, well ahead of the annual estimate of a 6.3 percent increase.  At the same time, sales and use taxes, reflecting sales made in November, fell 4.3 percent in December.

Because a number of factors can influence the flow of payments and monthly growth rates this time of year, December and January receipts must be considered together to get a clear picture of revenue growth.

Speaking about the December numbers, Governor McDonnell noted, “Over the last four years we have both projected revenue growth and budgeted conservatively.  In doing so, we have helped put Virginia in a more sound financial position for the future.  Virginia’s economy continues to improve.  Over the last four years we have worked in a bipartisan fashion to put in place policies that strengthen that give our private sector job-creators the tools they need to create jobs and opportunities for all Virginians.  This approach has worked.  Since the beginning of this Administration 177,300 net new jobs have been created.  And, our unemployment rate has fallen two full percentage points, from 7.4% to 5.4%.  I want to commend the great work of Virginia’s first chief jobs creation officer, Lieutenant Governor Bill Bolling, and the members of the General Assembly for putting in place pro-growth policies that have helped the Commonwealth emerge as an economic leader during tough fiscal times.”

The December revenue numbers are available at this link:http://www.finance.virginia.gov/KeyDocuments/RevenueReports/MasterReportsList.cfm

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Virginia Posts 5.4% Revenue Decrease in October

Governor of Virginia Bob McDonnell speaking at CPAC. Please attribute to Gage Skidmore if used elsewhere. (Photo credit: Wikipedia)

– Not a Significant Month for Revenue –

Minimal Growth in Withholding Most Likely Result of Federal Government Shutdown

RICHMOND - Governor Bob McDonnell announced today that October revenue collections decreased by 5.4 percent from October of last year. October is not a significant month for revenue collections. On a year-to-date basis, total revenue collections rose 0.6 percent through October, trailing the annual forecast of 1.5 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session’s historic transportation bill, total revenues grew 1.6 percent through October, trailing the adjusted forecast of 2.7 percent growth.

The decrease in October revenue was driven by declines in corporate, sales and recordation taxes, along with an increase in individual refunds. Collections of payroll withholding taxes only grew by 0.5% in October, with the weakness in growth most likely attributable to the federal government shutdown. Sales and use tax receipts fell by 1.7%, but that number reflects sales in September, prior to the federal government shutdown. Any potential impact of the shutdown on sales in Virginia would be reflected in the upcoming November revenue report.

 Speaking about the October numbers, Governor Bob McDonnell noted, “Over the last four years we’ve worked together in Richmond to find common ground and put in place policies that will spur private sector job creation and economic growth. Those policies have gotten results. 158,000 new private sector jobs have been created in Virginia, and our unemployment rate has fallen from 7.4% to 5.8%, the lowest rate in the Southeast. However, despite our work in the Commonwealth, we increasingly face headwinds that while not of our making, are having a detrimental impact on our people and our economy. The federal government continues to fail at the most basic of functions, including most recently failing at just the simple act of remaining open. This is having a direct impact on the finances of Virginia’s residents and our state government. We must continue to take prudent and proactive steps in our state government to help prepare the Commonwealth for the continued uncertainty that lies ahead. I look forward to working with the incoming administration of Governor-elect Terry McAuliffe to ensure that there is continuity in the successful bipartisan efforts that have helped make Virginia a national economic leader, even in these difficult times.”

            The October revenue numbers are available at this link:http://www.finance.virginia.gov/KeyDocuments/RevenueReports/MasterReportsList.cfm

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Virginia Posts 2.6% Revenue Increase in September

Governor of Virginia Bob McDonnell  Gage Skidmore . (Photo credit: Wikipedia)

– Significant Month for Revenue –

September Revenues All Pre-Federal Government Shutdown

RICHMOND - Governor Bob McDonnell announced today that September revenue collections increased by 2.6 percent from September of last year. September is a significant month for revenue collections because in addition to normal collections, the state also receives the first estimated income tax payment from individuals and corporations. On a year-to-date basis, total revenue collections rose 2.8 percent through September, ahead of the annual forecast of 1.5 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session’s historic transportation bill, total revenues grew 3.5 percent through September, ahead of the adjusted forecast of 1.4 percent growth.

The increase in September revenue was driven by growth in individual withholding, corporate income taxes and individual nonwithholding. Individual withholding rose 2.9 percent and individual nonwithholding grew by 2.1 percent. Corporate income tax collections increased by 16.7 percent. At the same time, sales and use taxes, reflecting sales made in August, fell 2.7 percent.

Speaking about the September numbers, Governor Bob McDonnell noted, “September was a positive revenue month for the Commonwealth, and we continue to run well ahead of our forecasted fiscal growth for the year. This is empirical evidence that the bipartisan steps we’ve taken here in Richmond to help the private-sector grow and create good jobs for our people are working. Unfortunately, the efforts we’ve undertaken in Virginia to make government function better, and use limited state resources wisely to improve the quality of life of our citizens, are being undermined daily by the dysfunction in Washington D.C. The ongoing federal government shutdown will have a direct negative impact on state revenues in the months ahead, just as it is already having a direct, negative impact on Virginians in their daily lives. The success of our Commonwealth is being threatened by the ineptness of Washington. I continue to call on leaders in both parties to reopen the federal government immediately, and come together to find solutions to the challenges facing our great nation.”

The September revenue numbers are available at this link:http://www.finance.virginia.gov/KeyDocuments/RevenueReports/MasterReportsList.cfm

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Virginia Posts 4.8% Revenue Decrease in August

Governor of Virginia Bob McDonnell speaking at CPAC. Please attribute to Gage Skidmore if used elsewhere. (Photo credit: Wikipedia)

– Not a Significant Month for Revenue –

Year-to-Date Basis: Total Revenue Collections Rose 3 percent Through August, Ahead of Annual Forecast of 1.5 Percent Growth

RICHMOND - Governor Bob McDonnell announced today that August revenue collections decreased by 4.8 percent from August of last year. August is not a significant month for revenue collections. On a year-to-date basis, total revenue collections rose 3 percent through August, ahead of the annual forecast of 1.5 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session’s historic transportation bill, total revenues grew 3.6 percent through August, ahead of the adjusted forecast of 1.4 percent growth.

            The decrease in August revenue was driven by a 5.5 percent decline in individual withholding payments. However, that reduction was expected following double-digit growth in withholding collections in July. In addition, this August featured one less deposit day than August 2012.  Additionally, sales and use tax collections fell 5.6 percent, reflecting sales in July.

            Speaking about the August numbers, Governor Bob McDonnell noted, “The Commonwealth just posted its fourth consecutive budget surplus. This is the first time that has been achieved during one gubernatorial administration since Governor Allen’s term in the mid-1990’s. While August revenue numbers are slightly down, as anticipated due to the importance of individual withholding payments, Virginia’s overall revenue picture continues to be positive. We are running ahead of  projections on a year-to-date basis, and we continue to make sound investments in areas like transportation, higher education, economic development and the Rainy Day Fund that are crucial to both the fiscal stability of state government and the growth of the private-sector. As we begin our work on the next biennial budget, which I will present in December, we will continue to adhere to a course of wise investment of limited resources in those sectors of government most crucial to spurring job-creation and providing opportunities for our citizens. I look forward to working with the legislature in crafting the Commonwealth’s budget blueprint for the next two years.”

The August revenue numbers are available at this link:http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2013-2014/2014ReportsList.cfm  

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Federalist Papers No 12 The Utility of the Union In Respect to Revenue

To the People of the State of New York:

THE effects of Union upon the commercial prosperity of the States have been sufficiently delineated. Its tendency to promote the interests of revenue will be the subject of our present inquiry.

The prosperity of commerce is now perceived and acknowledged by all enlightened statesmen to be the most useful as well as the most productive source of national wealth, and has accordingly become a primary object of their political cares. By multiplying the means of gratification, by promoting the introduction and circulation of the precious metals, those darling objects of human avarice and enterprise, it serves to vivify and invigorate the channels of industry, and to make them flow with greater activity and copiousness. The assiduous merchant, the laborious husbandman, the active mechanic, and the industrious manufacturer,—all orders of men, look forward with eager expectation and growing alacrity to this pleasing reward of their toils. The often-agitated question between agriculture and commerce has, from indubitable experience, received a decision which has silenced the rivalship that once subsisted between them, and has proved, to the satisfaction of their friends, that their interests are intimately blended and interwoven. It has been found in various countries that, in proportion as commerce has flourished, land has risen in value. And how could it have happened otherwise? Could that which procures a freer vent for the products of the earth, which furnishes new incitements to the cultivation of land, which is the most powerful instrument in increasing the quantity of money in a state—could that, in fine, which is the faithful handmaid of labor and industry, in every shape, fail to augment that article, which is the prolific parent of far the greatest part of the objects upon which they are exerted? It is astonishing that so simple a truth should ever have had an adversary; and it is one, among a multitude of proofs, how apt a spirit of ill-informed jealousy, or of too great abstraction and refinement, is to lead men astray from the plainest truths of reason and conviction.

The ability of a country to pay taxes must always be proportioned, in a great degree, to the quantity of money in circulation, and to the celerity with which it circulates. Commerce, contributing to both these objects, must of necessity render the payment of taxes easier, and facilitate the requisite supplies to the treasury. The hereditary dominions of the Emperor of Germany contain a great extent of fertile, cultivated, and populous territory, a large proportion of which is situated in mild and luxuriant climates. In some parts of this territory are to be found the best gold and silver mines in Europe. And yet, from the want of the fostering influence of commerce, that monarch can boast but slender revenues. He has several times been compelled to owe obligations to the pecuniary succors of other nations for the preservation of his essential interests, and is unable, upon the strength of his own resources, to sustain a long or continued war.

Read the rest below.

Federalist Papers No 12 Union and Revenue from Chuck Thompson

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