BASICS: Our economy is a consumer driven system so when consumers slow their discretionary spending the economic engine slows as well. In early 2008 Texas sales tax (that 8.25% tax we pay for clothes & uncooked food, etc.) receipts turned negative in a year over year comparison. This trend continued for 22 consecutive months ending in January 2010.

RECENT HEADLINE: The State of Texas recently forecasted an 18 billion dollar deficit (keep in mind our legislature meets once every two years). This deficit is related to the 22 months of sales tax decline.

BLOG FOCUS: In February & March of 2010, Texas posted 2 consecutive months of sale tax revenue increase! Austin alone had 5 months of sales tax revenue increase! Keeping up with the sale tax revenue is a great gauge on 'consumer confidence'. University of Michigan does a monthly posting on National Consumer Confidence and our Texas Sales Tax Revenue could be one way to look locally at ‘Consumer Confidence’.

Let’s all hope we are going to continue this trend of sales tax revenue in Texas + Austin + see it nationally!
Oh, and it might not hurt that Texas has around 1,500 newcomers PER DAY! Austin is supposed to see about 500 to 800 per week moving here