As the coronavirus pandemic swept through the United States, states braced for economic devastation on the level of the Great Depression.
Despite the economic toll of the pandemic, which has reflected in millions unemployed and thousands of businesses in dire straights, states tax revenue from 2019 and 2020 remained roughly flat.
Though sales taxes fell by billions as stores closed and people stayed home, the massive federal stimulus bills propped up families, businesses, and the markets and averted the doomsday predications, the Wall Street Journal reported.
The stable economy for white collar and upper class workers able to work from home also brought in more tax revenue than expected.
That is not to say the financial outlook is rosy; experts predict most states will be struggling with budget gaps. The Biden administration’s $1.9 trillion economic recovery package is expected to help states fill their shortfalls.