Above the Fold

States’ Pandemic Tax Rolls May Surprise You

It’s been about a year since the federal government and most states shut down non-essential business, crimping economic activity and sending millions to the unemployment line. With consumers’ incomes at risk and many storefronts closed, spending on everything from fuel and clothing to salons and restaurants slowed dramatically. Logically, it would make sense to assume that state tax revenues would plummet, but that simply wasn’t the case. 

A recent Wall Street Journal report revealed that a great number of states actually saw cumulative tax revenues rise in 2020 compared to 2019, with only a handful of states experiencing major declines of 10% or more. In all, combined state tax revenues were not far off from 2019 levels, declining just 0.4% overall. States like Utah and Idaho, which attracted California workers, saw exponential jumps in revenue, while heavy tourism states with strict lockdown rules such as Hawaii and Alaska, saw major slumps. 

Put simply, federal aid to states, combined with direct-to-consumer cash in the form of two separate stimulus packages, cushioned a major portion of the financial blow in most areas. Consumers certainly may have shifted their spending preferences online and into certain areas like tech and furnishings, but sales taxes kept rolling it. Many major metros have already begun reopening, and now with another near $2 billion in stimulus on the way, it’s not unreasonable to believe that the pandemic could likely end up as a net positive income event for most states. 

Three Things 

1. The Pentagon Wants Iron Man (No, Really) – The Defense Advanced Research Projects Agency (DARPA) is soliciting vendors to develop a “portable personal air mobility system.” The Pentagon agency’s goal is to eventually equip soldiers with a mobile flying suit, system or apparatus that will enable rescues, special missions and/or quick battlefield entry and exit. They are willing to pay $1.5 million in development costs for the right idea — which could lead to a much bigger contract. 
2. Could Sin City Save the Empire State? – With New York City’s commercial real estate in a slump and a worsening state budget deficit, New York may turn to Las Vegas titans for reprieve. According to the New York Post and others, Wynn Resorts, Bally’s Corp and Las Vegas Sands are all quietly jockeying for an opportunity to expand gaming operations downstate (which includes New York City). Lawmakers are expected to approve three gaming licenses two years earlier than originally intended, and requests for proposal (RFPs) could come from the state as early as next month.  
3. Forget Drone Security Cams, Amazon Is Creating a Full-On Robot – Amazon continues to develop bold, innovative gadgets; even if some, like the Dash Wand and Fire Phone, never make it big (or at all). The latest for the tech giant is a home robot codenamed Vesta, according to a report from Insider. More than 800 staff members have been secretly working on the project that’s said to be in “late-prototype stage.” The large device is expected to be equipped with a myriad of screens, sensors and even a robotic arm and compartment to “fetch” items you may need or have lost. Skeptics are concerned about demand and pricing for the product; both of which are to be determined. 

Did You Know?

A Decade Since Fukushima 

Ten years ago to the day, the largest earthquake ever recorded struck Japan at 2:46 in the afternoon. The massive seismic event triggered a devastating tsunami, amplifying its damaging effects. As the destruction spread, the floodwaters disabled the power supply and cooling systems of the three active Fukushima Daiichi reactors (the other three were shut down for maintenance at the time). Over the course of the next few days, the three reactors exploded, releasing clouds of radiation into the air. The incident is considered to be the second worst nuclear accident after Chernobyl. An area of 371-square-kilometers remains evacuated today.