It is important to understand state tax volatility, especially during a negative economic shock as a recession. Coping with fluctuations in state tax collections has become increasingly important. A decline in total state government tax revenue is expected when a recession hits. Therefore, it is evidenced that there is a negative relationship between recession and state total tax revenue. Is the evidence of the real world consistent with this prediction? If so, which how does this affects each state tax composition? In order to answer these questions we created a Tableau visualization and analyze government revenue data collected for each state in the United States. We broke down the data for each state tax composition and focused on income, sales, property and other taxes. Then, we analyzed trends in the percentage difference in average total taxes from the previous year in each state, as well as, year over year percentage change of each state’s tax composition and made a graphical representation of YOY percentage change of each state’s tax composition (Property Tax, Sales Tax, Income Tax and Other Taxes YOY). By analyzing our tableau illustration and graphs, we used Connecticut’s percentage as an example. We also used Stata to run a regression analyses. By investigating all the state tax composition data, our goal is to discover which of the state sub-taxes has the biggest change during and following a recession.
Loading...
Reload document 
Open in new tab