February 18, 2021
In our policy brief about how Washington does not have a budget shortfall, we showed how state revenues have continued to increase through the current recession. We also noted that our revenue growth compares favorably to other states.
Pew has now released new data that shows that Washington’s tax revenue growth from the pre-Great Recession peak through the second quarter of 2020 was 36.3%. That’s the second highest growth in the nation, behind North Dakota. (Through calendar year 2019, Washington’s revenue growth ranked fourth highest.)
Additionally, Pew reports that Washington’s inflation-adjusted tax revenues for fiscal year 2020 grew by 3.8% over FY 2019. That’s the second highest revenue growth (behind Idaho) and Washington is one of just seven states in which revenues grew.
Overall, Pew notes,
Categories: Budget , Economy , Tax Policy.
Revenue losses for fiscal 2020, though, turned out to be not as dire as many states and economic experts had forecast at the outset of the pandemic, thanks to federal aid that helped support businesses and unemployed workers, a quicker fall in the unemployment rate than originally anticipated, and higher-wage professions that widely escaped job losses.