While the picture for states and their municipal debt problems is anything but pretty, this is one factor turning around that may alleviate some of the pressure, according to Deutsche Bank.
From Deutsche Bank (emphasis ours):
The latest data from the Rockefeller Institute of Government shows that state tax revenues have increased by 2.3% in 2Q 2010 compared to a year ago. Personal income taxes, which account for roughly 35% of state tax revenue (24% of state and local combined), increased 1.6% year-on-year in the second quarter.
And, with retail sales rising and consumer confidence growing, these tax revenues are likely to continue to grow, according to Deutsche Bank.
Photo: Deutsche Bank
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