U.S. states collected less personal income tax revenue in April than they did a year earlier, a Reuters analysis shows, and analysts said they believed high earners were shifting income to next year, hoping for tax cuts from the federal government.
State personal income tax (PIT) revenue dropped an average of 6.6 percent in April from the same month last year in the 27 states for which Reuters has data. Removing outliers Louisiana and Oregon, which had big gains due to technical factors, magnified the drop to 7.6 percent from last year.
Taxes on wages and investment income are a top revenue source for the 43 states that collect it. April is the most important revenue month due to the tax filing deadline and the tendency of taxpayers who owe money to wait until the last minute to pay.
“We believe the declines are mostly driven by the taxpayer behavior,