Today’s Projo report on the decline in state revenues for July and August contained this illuminating glimpse of just how bad things might be for small business owners and self-employed workers. The report quotes at length from John C. Simmons, executive director of the Rhode Island Public Expenditure Council:
Simmons also expressed concern because estimated income tax payments — typically submitted by taxpayers who work for themselves — are down 27 percent.
“That’s a signal from the taxpayer,” he said. The only question is what message taxpayers are sending. Are they holding on to their tax payment as long as possible because their budgets are tight? Or are they estimating that their income has dropped that much?
For the state, the big picture is a potential budget deficit of $101 million for the fiscal year that just started.