The latest tax data is out from the Rockefeller Institute and the picture is NOT good. Total state income tax revenue for April 2017 fell 4% from April of last year. All told, April income tax revenue fell in 24 of 41 states. This is not a good sign because tax revenue always expands with economic growth and these numbers show economic contraction not expansion.
Wait, it gets worse. Out of 21 states, 19 States that their monthly cash flow forecasts fell short in April and May. The median shortfall was 6.4%.
GDP growth, unemployment numbers, inflation metrics… these are all massaged to the point of being fiction. Tax revenue is accurate. People either pay their taxes or don’t.
Under normal circumstances, this is a big negative for stocks. But with stocks in a complete bubble fueled by the belief that the economy is roaring… it’s a potential disaster in the markets so be careful and maintain your Wealth Preserversubscription.
InterAnalyst has been serving investors globally since 1990. Authoring hundreds financial articles and publications, thousands of trading charts to investors worldwide.