Another indication that Missouri’s economy is in a slow road back up comes with new tax collection numbers. The state budget office says gross tax collections is up one percent from May of 2009–about six million dollars more. Not a great increase, says budget director Linda Luebbering, but it is an increase.
It’s categories within the category that provide some clues to something that’s getting better. Corporate income and corporate franchise collections are up almost three percent. And Luebbering sees an increase in withholding taxes—meaning more people have jobs.
Another positive in these numbers–People are buying things again. Sales tax collections are up nine percent for May, compared to May a year ago.
It’s incremental progress…but not enough to avoid more budget reductions in a few weeks.