Sales in New York on the Recovery
According to the Department of Taxation and Finance, sales tax revenue here in the great state of New York is on the rise. Revenue statewide was up 7.2 percent between January and June. That brought total revenue up from $11.4 billion to $12.2 billion. Since our local government, like most, rely on sales-tax revenue to pay for Medicaid and other statewide services, the increase in sales certainly helps the New York.
The national recesssion has certainly taken a toll on New York. As we now know, lower sales-tax revenue means job cuts within state offices. Just last week, Governor Cuomo announced 321 more jobs were being eliminated and, which offices had these layoffs. Scary stuff! It seems like its a vicious cycle. Job market stinks/ companies can't afford pay raises -- money is tight -- New Yorkers spend less on frivolous items -- decrease in sales-tax revenue -- elimination of jobs. And so, it goes around again.
At least there is light at the end of the tunnel. The recent numbers including this information about the sales-tax revenue going up is a clear sign the economy is on the rise again and recovering slowly, but surely! Let's keep our fingers crossed!
Have you been in the habit of cutting certain expenses out of your household budget since the recession began? If so, what activities or items have you cut back on? Have you slowly started to spend money on these things now?