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Mass. Tax Revenue Down 22 Percent

More troubling news regarding state revenues. The latest figures show the state took in 22 percent less in the first half of this month than a year ago.

WBUR's Steve Brown has more.

Tax collections fell by $248 million in the first half of January. State revenue commissioner Navjeet Bal says the drop was consistent with expectations, forecast by a drop in estimated income tax payments and a decrease in withholding.

BAL: It reflects the downturn in the economy, more generally. It reflects a concern about either job loss, or fewer hours worked. That leads to a decline in withholding. It reflects the downturn in the stock market, which will lead to a decline in capital gains tax realizations.

The figures do not take into account sales tax receipts. Those come in to the state during the second half of the month, although they too are projected to be down considerably.

This program aired on January 22, 2009. The audio for this program is not available.

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