Tax Return Data Shows Declining Average Tax Collections in Colorado
Most of the employment data used in economic trends analysis depends on survey data using samples. This data can be useful, but it's always helpful to have other sources to provide context to the data. One way to analyze trends on an annual basis is to use tax return data. Tax return data, of course, is especially reliable because misrepresenting income on tax returns can bring stiff fines and even jail time. Specifically, there are at least two helpful data points here. One is the number of filers for each year. This tells us how many people (or joint filers) had enough income to necessitate filings a return. When the number of people with jobs declines, the number of filers will decline. What the job market is adding many new workers, the number of filers will tend to increase. Looking at the total number of filers putting in income tax returns, we see the following trend: Not surprisingly, as job growth surged at the end of the last economic boom, ...