President Trump’s presidency has been a boon for states. Thanks to major increases in state tax collections in late 2017 and mid-2018, 41 states have recovered from the Great Recession.
State bank accounts are in much better shape to weather a new recession, according to a recent analysis by Pew, though challenges remain because of the debt that states accumulated after the downturn.Yet this is no time for spending complacency.
For local governments, the Barack Obama years — characterized by tax hikes, more extensive regulations on businesses and sluggish economic growth — looked like no other in recent memory.
Though tax revenues rebounded quickly after most recessions since World War II, states crawled fitfully out of the 2008–09 downturn. By the end of 2014, fewer than half the states had recouped the revenues they lost in the recession and its aftermath.