The obvious point of this chart published by the Center on Budget and Policy Priorities (“Top Three State Tax Charts”) is that state tax revenues suffered deeper, more prolonged losses during the 2007-09 economic slump than in previous recessions. While the Center provided no breakdown by state, it is hardly a stretch to suggest that Virginia followed the national pattern.
Now, take a closer look. State tax revenues recovered rapidly during the 1981-82 downturn but have dropped deeper and/or taken longer to recover in each succeeding recession.
Anyone want to lay odds on what the next recession will do to state tax revenue?
